Maravi

'All baby products should be VAT-free'

'All baby products should be VAT-free'
By Kabanda Chulu
Tuesday January 29, 2008 [03:00]

SOME mothers in Lusaka have asked finance minister Ng’andu Magande to extend the exemption of value added tax (VAT) to all baby products because they are expensive. And National Food and Nutrition Commission acting executive director Freddie Mubanga said the exemption of infant formula from attracting value added tax would give an alternative of choices to HIV/AIDS breastfeeding mothers.

Commenting on the budgetary pronouncement by Magande that infant formula would no longer attract VAT, Margaret Chansa of Roma said the exemption by the government was welcome because infant formula had become more of a luxury than a necessity.

“It is a good decision by the government since infant formula must be readily available because sometimes after giving birth, some mothers do not have enough milk hence experiencing difficulties with their babies,” said Chansa.

“But VAT exemptions should not just be with infant formula but must be extended to all baby products such as porridge, feeding bottles and other things because they are all expensive.”

Another mother, Everinah Phiri of Makeni said the exemption would ensure that the product was readily available to people in order to have healthy babies.

“It is good to see this exemption because many people are poor and they cannot afford to buy infant formula but I hope this development will result in having the products readily available for all,” said Phiri.

Cynthia Kayombo of Arrakan Barracks said the exemption would allow working mothers to afford the product since many of them preferred to place their babies on bottle-feeding.

“Finally government has done something good especially for mothers because children were suffering because these products are very expensive and in some cases those who cannot afford resorted to feed their babies with raw milk from the cow or the over processed ones that are cheap and readily available,” said Kayombo.

And Mubanga said the decision was a positive development for the country.

“We have welcomed that decision because it will give us options as much as we encourage breastfeeding, the reduction in the cost of the product will provide alternatives of choice to people especially HIV/AIDS breastfeeding mothers,” said Mubanga.

“Actually infant formula is the best option not only for HIV infected mothers but also for those young babies who lose their mothers after birth.”

Last Friday, Magande announced that infant formula was a major nutritional supplement for babies hence the government’s decision to exempt it from VAT effective April 1, 2008.

“Given that infant formula attracts VAT, it makes the product unaffordable to many families, I therefore propose to exempt infant formula for VAT purposes and this measure will result in a revenue loss of K2.1 billion,” said Magande.

Labels: VAT

posted by MrK @ 10:00 AM