In order to regularize the import of vehicles into Malawi, the authorities have established a new classification of passenger vehicles. Vehicles are classified according to the number of seats and the year of manufacture. Taxes and tariffs will therefore necessarily vary from one vehicle to another.
Vehicles with a maximum of 11 seats
All users are obliged to comply with the regulation. As a result, vehicles with 10 seats (including a driver) between 8 and more than 12 years old and not able to accommodate more than 11 persons are subject to the following rates:
• 25% customs duties
• 16,5% VAT
In this category of vehicles, however, there is a clear difference in excise duties. Vehicles between 8 and 12 years pay excise duties of 80%, while vehicles over 12 years pay excise duties of 110% and those under 8 years pay 55%.
Vehicles with a maximum of 31 seats
This category includes vehicles with a minimum of 11 seats but can carry no more than 31 persons (including the driver). In this category, the rates are the following for vehicles from 8 to more than 12 years of age:
• 15% customs duties
• 16,5% VAT
With regard to excise duties, vehicles less than 8 years pay 5%, those between 8, 12 years pay 30%, and those over 12 years pay 60%.
Vehicles with up to 44 seats
In this class, the vehicle has at least 31 seats with a maximum capacity of 44 persons, including the driver. Rates are as follow:
• 15% customs duties
• 16,5% VAT
The difference as usual is at the level of the assize rights, which are 0% for cars under 8 years, 10% for 8-12 years and 25% for those over 12 years. It is clear that the government wants to encourage the importation of vehicles of less than 8 years, regardless of their category.
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