Parliament has referred back a report from its Committee on Industry, Trade and Tourism on the Impact of Malawi’s tax policy regime in the industry, trade and tourism sectors.

The report, which was initially tabled in the House last week Wednesday, is proposing tax amendment on some products including spirits.

But responding to contents of the report, the lawmakers observed that recommendations being proposed in the report will not be applicable in accordance with the country’s Tax Policy Regime.

Said one of the lawmakers Owen Chomanika from Chikwawa North: “It’s because some of the taxes they have talked about they have missed a small point because it`s about exercise duty and also Value Added Tax (VAT).”

One of the reasons why we have higher exercise duty on spirits it’s because to curb consumption, to discourage people from consuming them of their higher alcohol content.”

Chomanika singled out the removal of exercise duty on various products as something the needs proper consideration.

“To just say that only every beer we reduce the taxation in exercise tax it was something that we felt it was not well articulated,” said Chomanika.

“But the question was the applicability of what they recommended, the recommendations could have some repercussions now how we collect our taxes and manage our tax regime.”