Malawi parliament wants MORE taxes on beer, tobacco

The Health Cluster Committee has suggested the implementation of sin taxes on tobacco, sugar, and alcohol to create a National Health Fund, as Malawi is experiencing a decrease in donor support for health financing.

Sin tax refers to an excise tax imposed on certain goods and services deemed detrimental to individuals or society.

During the presentation of the cluster’s report in Parliament today, the Committee’s chairperson, Anthony Masamba, stated that donor flight and fatigue have led to a reduction in budget support, yet the government has been sluggish in responding with the necessary urgency.

“We are all witnesses to the donor flight and fatigue; our budget support has been diminishing, but we are very slow to act with urgency,” Masamba remarked.

Additionally, the committee has recommended the introduction of toll gates in border districts to generate revenue. However, Masamba recognized that such funds are frequently susceptible to misuse.

To mitigate this issue, the cluster is advocating for the establishment of a National Health Fund and the enactment of a National Health Insurance law to safeguard the resources generated from these initiatives.

“All funds and health levies should be directed towards the proposed National Health Fund,” Masamba emphasized.