AreaMalawi

Commodity GroupOilseeds, oils and meals

CommodityVegetable and animal oils/fats

Date01/09/2017

Policy CategoryProduction

Policy InstrumentTax policy

DescriptionExempted, effective 1 July 2017, vegetable and animal oils/fats and their derived products from paying value-added tax, with a view to help the indigenous edible oil industry grow and domestic oilseed production expand.

NotesIn Malawi, vegetable and animal oils/fats and their derived products have been exempted from paying value added tax, effective 1 July 2017. As a result, refined vegetable oils will no longer attract VAT at 16.5 percent. Aimed at protecting domestic refiners from the inflow of cooking oils that do not undergo value addition locally, the measure is expected to help the indigenous edible oil industry grow and domestic oilseed production expand. Reportedly, analogous measures are in place in Zimbabwe, the United Republic of Tanzania, Mozambique and South Africa, while, in Zambia, the edible oil industry repeatedly called on the local government to implement a similar policy (see also MPPU Aug.’13).