Malawi: Grace Thipha examines mining revenue losses
Grace Thipha, of The Times in Malawi, has written about the country’s reported losses in potential revenue due to the tax regime offered to mining company Paladin.
The story, published on 15th July 2015, suggests Malawi has lost millions of dollars due to an array of tax incentives offered by the government, along with tax planning by Paladin. It also highlights government deficiencies within the mining sector and the need for more expertise when negotiating contracts.
Malawi's mining revenue battles
Two years after a mining revenue report alleged that Malawi has lost potential revenue of between US$205 and US$281 million from the tax regime given to Paladin Africa for its Kayerekera mine over the 13 year period of the project up to 2013, the auditors general’s office is yet to act on the matter.
The report, ‘Malawi’s Mining Opportunity: Increasing Revenues, Improving Legislation’, issued jointly by the Catholic Commission for Justice and Peace, the Evangelical Association of Malawi, and the Episcopal Conference of Malawi through funding from the Norwegian Church Aid and co-authored by economic commentator Rafiq Hajat, alleges that Paladin paid very little tax during its mining lifespan after the government reduced both its corporate income tax rate as well as its royalty rate on top of other tax concessions cast in stone for at least 10 years. Click here for full article.
