Blantyre, Malawi — Members of the general public trading across the borders of Malawi have observed that NGOs and some church leaders deny government millions of kwacha in revenue through false declaration of personal goods, saying they belong to their NGOs, churches and religious organizations.

At a time when the Malawi Revenue Authority (MRA) has intensified its tax collection campaign, NGOs and religious leaders cheat at immigration entry points that large volumes of goods bought outside the country are not personal hence legible for duty exemption.

Lucy Makhala from Naperi Township in Blantyre observed that some NGOs and church leaders have devised new strategies of declaring the goods as church property when, in fact, they are personal just to avoid paying duty.

"The men and women of the church have devised ways of cheating customs officers. When they travel they carry documents, which purport that the goods they are buying belong to the church while they are purely personal. When they get to the border they make false declarations and go scot-free while fellow Malawians are being pestered to pay duty," said Makhala.

She further alleged that this practice is robbing government of financial resources that could have assisted in the alleviation of poverty among Malawians who include the flock they lead in their respective churches.

Church ministers and influential individuals are singled out as main culprits in this scam as they purchase vehicles and valuable materials in the name of the church to evade duty.

Commenting on the allegation, Reverend Fletcher Kaiya, General Secretary of the Baptist Convention of Malawi (BACOMA), expressed concern with the development saying if it were true then it was bad for the image of the religious community.

"If this really happens then it's bad behaviour not befitting the religious community. It is a sin before the Lord as the Bible warns against cheating," said Reverend Kaiya.

Bishop Chalinda of Abraham Church in Chilomoni Township in Blantyre suggested that proper procedures be executed to distinguish fake declarations from genuine ones.

Chalinda said it is time the duty collection authority worked hand-in-hand with stakeholders in all sections of the society to avoid occurrence of such incidents.

Elder John Mpando of Jehovah's witness said duty evasion in the name of the church only tarnishes the image of the church and must be condemned in strongest terms.

In his comment, the Malawi Revenue Authority (MRA) Acting Commissioner General, Ernest Mtingwi, said he was not aware of the practice where church leaders cheat to be exempted from duty.

Mtingwi, however, said the duty free facility is only extended to church organisations and not individual members.

"Church denominations and organisations are not supposed to pay duty on donations and goods for the specific use of their entities. For instance, building materials and holy communion utensils, are duty free," he said, adding that in certain cases churches are asked to pay duty for some goods. But he did not elaborate.

The Acting Commissioner General further said MRA is under authority by Section 142 and 143 of the Customs and Excise Act (Cap 42.01) to impose stiffer penalties on all culprits guilty of Customs and Excise offences.

Any person found guilty of an offence against the Act is liable to a fine of either K10, 000 or three times the value of the goods and to three years imprisonment with hard labour.

A K5, 000 reward is earmarked for people with accurate information on tax defaulting or evasion incidents.