Zain Malawi Accused of Evading Import Duties

Zain Malawi has been accused of evading import taxes after a local newspaper found that import declarations were being changed without notifying the customs officials. The Nyasa Times reported that a shipment claimed to be network switching equipment was substituted for air conditioning units, which are subject to import taxes.

"Instead the mobile company imported 24 sets of air conditioners with accessories that did not enjoy duty free status….after the matter was raised with Zain officials they agreed that there was breach of taxation procedures and the company agreed to pay MRA MK4.7 million [around US$34,000] for the goods," said a source at a Malawi Revenue Authority (MRA) office who spoke on condition of strict anonymity.

Zain did not respond to requests for comments from the newspaper.

The operator, formerly Celtel is the largest in the country by subscriber base. According to statistics from the Mobile World analysts, the operator ended Q1 '09 with just under 1.4 million customers and a market share of around 66%. The only other operator is Telecom Networks Malawi (TNM), although several other networks have been granted licenses.

On the web: Nyasa Times - Mobile World

Posted to the site on 17th August 2009