Trade and markets
 

Detail

Area
Malawi
Commodity Group
Oilseeds, oils and meals
Commodity
Vegetable and animal oils/fats
Date
01/09/2017
Policy Category
Production
Policy Instrument
Tax policy
Description
Exempted, effective 1 July 2017, vegetable and animal oils/fats and their derived products from paying value-added tax, with a view to help the indigenous edible oil industry grow and domestic oilseed production expand.
Notes
In Malawi, vegetable and animal oils/fats and their derived products have been exempted from paying value added tax, effective 1 July 2017. As a result, refined vegetable oils will no longer attract VAT at 16.5 percent. Aimed at protecting domestic refiners from the inflow of cooking oils that do not undergo value addition locally, the measure is expected to help the indigenous edible oil industry grow and domestic oilseed production expand. Reportedly, analogous measures are in place in Zimbabwe, the United Republic of Tanzania, Mozambique and South Africa, while, in Zambia, the edible oil industry repeatedly called on the local government to implement a similar policy (see also MPPU Aug.’13).