New SMS, Data, Internet Tax A Need For Quality Service Says CAMA

As debate on the imposed 10% tax for SMS, Data and Internet, continue being criticized as ‘retrogressive’, the Consumers Association of Malawi (CAMA) eyes beyond the tax.

Gondwe: anunced the tax increment 

Minister of Finance when presenting the Budget statement in the National Assembly, announced the tax increase on SMS, data and internet. Hon Goodall Gondwe argued that Malawians have now access to communication mobile devices at a fordable rates hence imposing 10% tax would be a rights source for government revenue.



However, the decision has been heavily criticised as people still feel Malawi has one of the most expensive mobile communication services whose services are poor.

CAMA says this is also a moment to highlight the need for proper frameworks and legislations for MACRA in the regulation of mobile service providers to improve their services. 

John Kapito

CAMA Executive Director Mr. John Kapito agrees that the new tax on mobile services adds insult to a wound, as already mobile services reap Malawians with high priced poor services. 

But Kapito highlighted that people (ICT Consumers) should now push that Malawi Communication Regulatory Authority (MACRA) implement improved relevant policy frameworks and legislations to enforce service providers help people get high quality affordable services.

Though acknowledging that MACRA has now taken a right path in terms of engaging with consumers, he emphasized that implementation of policy frameworks and legislations that makes MACRA responsive regulatory body and considers views and concerns of the public on mobile service providers would be necessary to end mess in the mobile telecommunication sector.

“Normally issues of Tax government does not consult anybody, government is trying to raise money from wherever it can raise. And they will decide and pounce on any product that they think they can raise money on. So the idea that they went on to the mobile services is an education that they decided to do so, and is something that may be they are now regretting that they did and we are hoping that because they are the listening government they might want to reverse that because it is not helpful at all and not is progressive but retrogressive in nature.”

“So am positive that let’s not get worried about that tax alone there are so many issues in communication that we should be worried than 10%.” He said 

He therefore mentioned the strengthening of regulatory body Malawi Communication Regulatory Authority (MACRA) as the best remedy in the trashing out the mess in the communication sector which is reaping much its customer.

“Once we have done that with the regulator and the regulator being able to monitor and influence change it can help a lot than just 10% increment but that tax is retrogressive.” 

“The key one is improving the policy frame work that MACRA has and their piece of legislation we need to make sure that their act is clear of what they can do. And it has all the frameworks to make them do the work that they are doing."

But Kapito has hailed MACRA for introducing initiatives that makes it stay closer to the public. He said that is a step forward that must be encouraged and seen also happening in the policy framework.

MACRA, CAMA ASKS Consumers To Demand Rights

Malawians have been urged to demand their consumer rights and protest against any market abuses and social injustices.

Malawi Communications Regulatory Authority (MACRA) Director General Andrew Kumbatira made the call in Lilongwe Tuesday morning during the Media and Civil Society Organization Workshop on consumer protection. The call has also been echoed by consumer Association of Malawi (CAMA).

Andrew Kumbatira 

Kumbatira observed that it is disheartening that in the face of abuses at the hands of various operators in Malawi's growing communication sector, consumers remain unacceptably quite.

He said only few individual rights campaigners including Consumer Association of Malawi (CAMA) and few CSOs have been vocal in demanding consumer rights.

"Let me remind each one of you to be assertive. Some of the operators in our communications sector get away with market abuses as a result of our silence. If we collectively speak up we are going to force them to take a notice of the myriad challenges that we are experiencing" Kumbatira urged while emphasise full utilisation of all available channels that MACRA opened up across the country.

He said MACRA is serious in consumer protection issues as now it has among others embark on various initiatives to protect the consumer including the setting up a dedicated Consumer Unit, revising laws to incorporate consumer protection and enhancing monitoring of quality service.

He even assured the communications (ICT) consumer (one using telecommunication services offered by service providers licensed by MACRA for personal use like Access, Airtel, MTL and TNM) that dropping calls and network congestion will be a thing of the past since, MACRA was cleared by the Supreme Court last year to start implementing the Consolidated ICT Regulatory Management System (CIRMS) which among others can monitor quality of service in the sector including assessing the levels of network congestion and dropped calls.

Adding to Kumbatira's call, MACRA Deputy Director of Consumer Affairs, Miss Thokozani Chimbe said everyone has a role to play on demanding consumer rights.

Miss Chimbe said collective voice from consumer themselves demanding their rights from service providers carries more weight than leaving the task to few individuals and CSOs.

The workshop in Lilongwe seeks to build partnership of CSOs, Media and Macra on promoting basic rights of all consumers to demand those rights are respected and protected and to protest against any market abuses and social injustices which undermine those rights. And it is part of MACRAs consumer awareness campaign which was launched in March this year.

These calls comes amid observation that a lot of Malawians do not demand or protest for their rights and in most cases, they leave it in hands of few individuals and civil society to speak on their behalf.

But in reaction to consumer silence in the country, the Consumers Association of Malawi (CAMA) says time has come for Malawians to wake up and begin to demand for their rights whenever they feel that service providers have infringed their rights.

John Kapito

John Kapito CAMA Executive Director says consumer’s needs to utilize all available channels to complain on any infringements of rights.

He also encouraged CSO’s Media and everyone to raise awareness and education of the consumer rights saying this will enable service providers to enhance their service provision.

“I think the issue about demanding the rights is another process that requires a lot of awareness and education and we need to make sure that we are moving with the people in trying to do so. People find demanding rights as something that is useless or is a waste of time. But I think let us inculcate that spirit in people to make sure that when they go out there and their rights have been abused they must continuously demand for them. And once you begin demanding for these rights you find that service provision becomes very good as well.” said Kapito

He hoped that with consistence of messaging at different levels people will begin demanding their rights as consumers.

“Malawians have been on receiving end, but we are saying that can we please stop being on the receiving end, go out there and demand. Challenge the service providers, once you have done that you will find that services that we are talking now to be poor will be better and there will be some change on the market.”

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