MRA’s style of doing business on car importation taxes under microscope

By Duncan Mlanjira

A lot of people have expressed their bitter and frustrating experiences they have undergone with Malawi Revenue Authority (MRA) in trying to clear vehicles they had imported following revelation one individual made on Facebook.

It started with an anonymous individual who hit the inbox of powerful critic on social issues, Onjezani Kenani, who narrated that he bought a vehicle (2001 Daihatsu Hijet mini truck) from Be Forward Japan at a cost and freight of $970 and has proof of payment as in a deposit slip.

The 2001 Daihatsu Hijet mini truck

He said it was shipped as scheduled on April 30, 2020 and following the Coronavirus outbreak, he followed all the measures of not going or sending someone to Dar es Salaam to collect it.

“Instead I hired a Tanzanian agent to drop it off at the Songwe border for me [and] it was handed over to my agent perfectly on 07/05/2020,” said the complainant.

“On the same day, I got the declaration form from my agent for taxes, which I did not complain of how high the duty of the said vehicle was.

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“I complied by making an e-payment through MO626 [and] as I was waiting for the release order, I got news that my vehicle has been lifted by MRA on under declaration grounds.

“My agent, with the evidence of payment documents and all supporting documents available, did everything possible to get it released but failed, now we have to make an appeal to MRA head office.”

He declared that he was ready to make the appeal, but he has been tipped by someone that since he has no connection at MRA’s Msonkho House in Blantyre, he won’t get assisted. 

MRA’s Msonkho House

“I am left stranded, I have no other alternatives. I am helpless and I can see myself losing the vehicle and I can say I have lost all the finances involved which some of it I had borrowed. 

“Why is MRA doing this to us? Not everyone who’s importing a vehicle is rich, not everyone importing a vehicle is a tax defaulter or evades taxes.

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“Please assist by posting this on your timeline. I am sure there is some ethical MRA officer out, who might see it and assist me. I have all the supporting documents.”

He opened a hot debate in which Jibu Risasi Nyirenda asked the person to soldier on and not to relent, saying he too lost a car which to date is at the border because of being tossed from one office to another.

He, however asked the complainant to go meet the head of customs and build his case there.

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Chikumbutso Rosemary Kondowe was intrigued and posed the question to Nyirenda why this is common because she has heard of many people complaining about this.

Nyirenda confirmed this, saying one is tossed from office to office and is finally referee to the same person who impounded it in the first place as if trying to frustrate you into giving up.

“Crazy stuff,” Nyirenda said. “I think we need to take these things to court now.”

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Wisdom Sankara Kamkondo advised the complainant to get the services of a lawyer, saying the matter will be settled faster.

He hinted that resources are available to people via law but they assume the worst before even trying.

Robin Nyang’wa said: “A knowledgeable agent knows the appeal processes. They start right at the border and if necessary you can appeal to the Commissioner General. 

“Thereafter you can appeal to the court. Why is he complaining even before appealing?

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“You first appeal at the port of entry by disagreeing with their uplifting the value of your vehicle. There is a committee which meets there and makes a decision. 

“Every agent knows that. They do it quickly. I speak from experience involving my vehicle. If you disagree with their decision, you are at liberty to appeal to the Commissioner General at Msonkho House.”

Martha Khungwa was also incredulous, saying: “But why do they say you have undervalued when these days you give the agent the CAP link of which they can verify the vehicle, the invoices and all.  

“We need electronic systems. [Elsewhere] e-customs helps a lot.”

Steve Kapoloma

As the debate raged on MRA’s spokesperson Steve Kapoloma, chipped in by asking Onjezani Kenani to advise the person “who ‘inboxed’ you to contact me so that I can take him through the declaration process”. 

“It’s straight forward and acting on an informed position I can assist him or her.”

Po Mvula wanted to know from Kapoloma if he could share how this whole issue will end as it will help some people to comply with tax and clearing processes.

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To which Kapoloma said: “Sure. I have just shared with him the procedure for appeal at technical/head office which can be done online. 

“He has assured me that he will submit the application today and will be assisted accordingly.”

Inno Vula asked Kapoloma to address the issue at Songwe border because the complainant who inboxed  Onjezani Kenani is not the only one with this problem.

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“Currently, there is so much congestion at Songwe border due to what MRA is doing to importers. The situation is not that healthy, bwana,” he said.

Louis Uko joined the debate by asking if the complainant consulted on the position of customs before importation “because most people just like to complain when goods are at the border and don’t consult clearing agents before making transaction”.

He said people would do better next time after consultation, some of which is for free. 

Alick Nyasulu said a Be Forward car has an internet link that MRA can access and a clearing agent is supposed to issue them. 

“It helps deal with any cases of perceived underdeclaration. I think the information provided here is not adequate,” he said.