UK-Malawi Tax Treaty: Make Tax Fair

The SMP is proud to be supporting the ActionAid campaign calling for the 1955 UK-Malawi tax treaty to be updated.

While in Malawi earlier this month, David Hope-Jones met with the British High Commission to highlight this issue. We are pleased to be told that both governments are keen to update the treaty and, after sixty years, we encourage both governments to make a public commitment to this end.

Alert to the concerns of our members, we understand the Secretary of the State for Scotland discussed this topic with the President while in Malawi. We are extremely grateful to Mr Mundell for highlighting the issue.

We hope a new treaty would including withholding taxes, anti-abuse clauses fit for the 21^st century, and be agreed through a transparent process with Parliamentary and civic engagement. We continue to be active in the Commons, the Lords and in the media, in supporting this campaign. We’re delighted at the sheer scale of support from Scottish MPs and Peers, the length and breadth of the country.

The UK-Malawi tax treaty is long out of date: it was signed nine years before Malawi gained independence between the UK Government and the UK Government’s appointed Governor of Nyasaland. It unfairly favours the UK and limits the ability of the Government of Malawi to tax UK firms operating there.

The UK Government highlighted this treaty as a priority to be updated in the year ending March 2015. We call on both governments to move this forwards.

CLICK HERE to find out how you can get involved in supporting the campaign.