Africa-Press – Malawi. Minister of Finance, Simplex Chithyola Banda, has commended the Tobacco Commission (TC) for remitting K1.5 billion in dividends to the government for the 2024/2025 growing season, describing the development as a milestone in strengthening Malawi’s domestic revenue mobilization.
Speaking at the official cheque handover ceremony held at the Bingu International Convention Centre (BICC) in Lilongwe, Chithyola Banda said the remittance reflects prudent management and is in line with the Public Finance Management Act.
“This is a collective effort aimed at building resilience in our economy. I have consistently emphasized that with unwavering dedication, strategic focus, and disciplined execution, we can build a self-sustaining economy. Today’s event is a testament to that belief,” he said.
The Minister hailed the remittance as transformative, adding that it exemplifies what public institutions can achieve when guided by integrity, efficiency, and a clear sense of purpose.
“This remittance is a powerful demonstration of the potential of non-tax revenues—particularly dividends and surpluses—as a critical complement to our domestic tax base, which currently accounts for only 16 percent of GDP,” Chithyola Banda stressed.
Commission’s Strong Performance
Tobacco Commission board chair, Dr. Godfrey Chapola, attributed the success to strong performance and reforms undertaken at the Commission. He commended Minister of Agriculture, Sam Kawale, for the commitment and support he has shown to the institution.
Chapola highlighted that the Commission has implemented key agricultural labour practice reforms that have brought sanity to the industry. These, he said, have promoted labour rights across the tobacco value chain while addressing long-standing concerns about child labour.
“With the Labour Practice Squad in place, the tobacco industry should no longer be blamed for employment-related labour violations,” he said.
Curbing Illegal Trade
The board chair also pointed out that the Commission has successfully tackled the challenges of illegal tobacco vending and cross-border smuggling, which had been undermining the country’s revenues for years.
“We adopted a multisectoral enforcement approach by collaborating with government departments to root out illegal practices that were eating into our tobacco volumes and earnings. As a result, we have seen remarkable improvements in compliance and revenue generation,” Chapola said.
The remittance, according to both government and the Commission, reflects the growing potential of state-owned enterprises to contribute significantly to national development.
For More News And Analysis About Malawi Follow Africa-Press
