1 / 11

TOBACCO INDUSTRY SEMINAR SUN ‘N’ SAND HOLIDAY RESOLT (9 TH – 10 TH SEPTEMBER, 2013 )

TOBACCO INDUSTRY SEMINAR SUN ‘N’ SAND HOLIDAY RESOLT (9 TH – 10 TH SEPTEMBER, 2013 ). TOBACCO PAYMENT SYSTEMS BY FELIX THOLE - TOBACCO ASSOCIATION OF MALAWI. PRESENTATION SUMMARY. Preamble Payment period Analysis Bank Exchange Rate Merchant/Bank Loan Common Account Withholding Tax

benito
Download Presentation

TOBACCO INDUSTRY SEMINAR SUN ‘N’ SAND HOLIDAY RESOLT (9 TH – 10 TH SEPTEMBER, 2013 )

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TOBACCO INDUSTRY SEMINARSUN ‘N’ SAND HOLIDAY RESOLT(9TH – 10TH SEPTEMBER, 2013) TOBACCO PAYMENT SYSTEMS BY FELIX THOLE - TOBACCO ASSOCIATION OF MALAWI

  2. PRESENTATION SUMMARY • Preamble • Payment period Analysis • Bank Exchange Rate • Merchant/Bank Loan Common Account • Withholding Tax • Dollar payment • Conclusion

  3. PREAMBLE • Paper discusses payment challenges before and after tobacco sales • Payment forms include remittance to market provider, sales proceeds to growers, grower refunds ( O/D, D/D, WHT), loan recovery, due payments to stakeholders, payment to transporters, etc • Agents include, merchant, Market provider, commercial banks, grower association, MRA, transporters, etc • Presentation for thought provoking and seeks your input for a redress

  4. 2. PAYMENT PERIODS ANALYSIS • 2.1 NORMAL PAYMENTS • 2.1.1 PRESENT SCENARIO • 2.1.2 EXPECTED/IDEAL SCENARIO • 2.2. OTHER PAYMENTS • (PRESENT SCENARIO AND EXPECTED/IDEAL SCENARIO)

  5. 2.1.1PRESENT SCENARIO ???

  6. 2.1.2 EXEPECTED/IDEAL SCENARIO ???

  7. 2.2 OTHER PAYMENTS

  8. 3. BANK EXCHANGE RATE • Inconsistence between selling day and payment day • Exchange rate not displayed on seller sheet 4. MERCHANT/BANK LOAN COMMON ACCOUNT • Remittance delays after full repayment (Months) • Inconsistent deductions • Deductions on non beneficiaries

  9. 5. WITH HOLDING TAX • Most small farmers not keeping farming transactions • Many profit margins below tax deduction threshold • Therefore suffer in silence • Refunds take months or years • 3% deemed high • 6. DOLLAR PAYMENT • Problems in proceeds share out for club members

  10. 6. CONCLUSION • Industry must address the challenges to ensure removal of the inequities along the tobacco value chain. • Your input is welcome

  11. THANK YOU ALL FOR YOUR ATTENTION

More Related