BEST BUY MALAWI? THEN WHY TAXING TNM TO DEATH?

If the best buy Malawi campaign is anything
to go by government should first force all
companies to subscribe to TNM or give the
company a tax break, not taxing the mobile
operator to death like is the case now.
Malawian mobile telecoms operator,
Telecom Networks Malawi (TNM) revealed
that its cost of levies, fees and taxes was
MWK 15 billion for the year 2014.
In a statement accompanying TNM’s 2014
financial results, Managing Director, Willem
Swart said the cost of doing business in
Malawi is one of the highest in the industry
in Africa, and substantially contributes to the
high cost of its operations.
Swart who is also Chairman of the
Association of Telecom Operators (ATOL)
said out of audited revenue of MWK 40
billion, TNM’s returned a net profit of MWK
5.2 billion after tax which is disproportionat
e to the MWK 15 billion fees paid to MACRA
and the government.
“We are committed to the economic
development of Malawi but we are worried
about future profitability and sustainability
because of the high cost of doing business,”
he said.
He added that TNM will oppose any actions
which would destroy value and the ability of
the company to invest on a sustainable basis
in infrastructure for the future.
Recently, TNM raised its call tariffs by 14
percent, well below inflation, due to the high
cost of regulatory obligations, but MACRA
decreed against the increase.
The situation raised concern in the broader
telecoms industry. It also came after a study
commissioned by MACRA reported that
Malawi had one of the highest call tariffs in
the world, which TNM says is inaccurate.

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