Action Aid questions why rich foreign investors operate tax free

Action Aid International Malawi has urged SADC Heads of states and government to abolish tax holidays governments give to multinational investors.

The NGO’s reps say such tax holidays are injustice and a catalyst for killing local trade, investment and industrialization.

They say removing them will enable fair trading and investment environment for both local and multinational companies.

Some SADC member states including Malawi have been giving multinational companies tax holidays as a measure of wooing them to invest in the country.

However, Action Aid International Malawi Country Director Martha Khonje says such developments leave the local investors with huge tax burden paid to government while the rich foreign investors operate tax free.