Following the removal of Value Added Tax (VAT) on cooking oil by government, cooking oil manufacturers have stated that they will reduce cooking oil prices effective April 1, 2022.
The Ministry of Trade and Industry has made the announcement through a press statement after convening a meeting with players in the industry.
“For transparency purposes, each company will report in writing to the Ministry of Trade and Industry the percentage of how much each company has reduced the price of cooking oil owing to the removal of 16.5 percent VAT and as part of the foregone revenue on input VAT claims from Malawi Government through Malawi Revenue Authority,” the ministry has said in a statement.
It added that in the event that there is persistent escalation of prices on the market, government will consider allowing more importation of cooking oil to stabilise the prices.
The statement further stated that government will continue regulating exports of raw soya beans to ensure adequate availability of the commodity to local processors “for sustainable local value addition, job creation and reduction of imports of crude cooking oil”.
The announcement is relied to Malawians who were and are finding it hard to access quality cooking oil due to high price.
