The Human Rights Defenders Coalition (HRDC) is challenging some clauses in a government law that seeks to apply 16.5 percent Value Added Tax on non-banking services.

This is according to a petition the grouping through private practicing lawyer Wesley Mwafulirwa has submitted to the office of the Attorney General.

The grouping threatens to drag government to court for judicial review of the issue should it proceed to implement the law.

It argues the law will suffocate financial inclusion especially to people in rural areas.

Yesterday, The Bankers Association of Malawi (BAM) announced that starting from November 1, 2021 non-banking activities will attract VAT of 16.5 percent.

However MRA weighed in accusing BAM of misinforming the general public saying that the introduced VAT is not an opportunity for banks to increase their fee on some services.