The Malawi Revenue Authority (MRA) has arrested two Blantyre based businesspersons for violations of the Value Added Tax (VAT) Act which led to tax revenue losses of over half a billion Kwacha between April to September this year.

MRA Head of Corporate Affairs, Steven Kapoloma said the arrests were made yesterday, 17th September 2019.

“Yuan Chenggang, a sales representative of Herocean Enterprises was apprehended on suspicion of selling iron sheets without charging Value Added Tax. The arrest was triggered by a search exercise conducted at Herocean Enterprises business premises that seized various company documents. The documents indicate that VAT was not charged on certain sales resulting in the evasion of K580.9 million,” Kapoloma said.

He further said Jiang Peng, a sales representative of United Manufacturing Company Limited in Blantyre was also separately arrested on suspicion of selling motor vehicle batteries without charging VAT, evading K45 million in the process.

The two acted contrary to provisions of the Value Added Tax Act.

The operation followed a tip from well-wishers who alleged that Herocean Enterprises and United Manufacturing Company Limited sells iron sheets and motor vehicle batteries, respectively, without charging VAT.

The suspects are currently at Blantyre Police Station as the Authority conducts further investigations.