Make Tax Fair
The UK's tax treaty with Malawi is outdated and unfair. It's time for Malawi to get a better deal. The SMP are working with ActionAid to call for this colonial-era treaty to be completely renegotiated, to be made fairer for Malawi and fit for the 21st century.
We're delighted to report that progress with this campaign looks very encouraging. We understand the UK Government is doing all it can now to update this treaty and is in active dialogue with the Government of Malawi.
David Gauke MP, Financial Secretary (HM Treasury) said in Parliament that "The UK has a large number of tax treaties which includes treaties with developing countries. Some of those treaties require updating and HMRC officials actively seek engagement with developing countries to that end." Citing Malawi as an example, Mr Gauke said negotiations were "close to conclusion".
Justine Greening MP, Secretary of State for International Development, said in Parliament "negotiations are going well" with the new UK-Malawi tax treaty, and went on to say "…it is time the international tax system worked more effectively. These negotiations are going well. They sit alongside other work the UK is doing, such as on beneficial ownership and tax transparency."
The Government of Malawi has said: "These discussions are progressing very well, and the governments of the two countries are committed to the conclusion of a fair and equitable revised agreement."
We applaud the commitment from both governments to this treaty re-negotiation and we eagerly await the outcome of this process.