Upload
clinton-rich
View
218
Download
0
Embed Size (px)
Citation preview
TOBACCO INDUSTRY SEMINAR
SUN ‘N’ SAND HOLIDAY RESOLT(9TH – 10TH SEPTEMBER, 2013)
TOBACCO PAYMENT SYSTEMSBY
FELIX THOLE - TOBACCO ASSOCIATION OF MALAWI
• Preamble• Payment period Analysis• Bank Exchange Rate• Merchant/Bank Loan Common Account• Withholding Tax• Dollar payment• Conclusion
PRESENTATION SUMMARY
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
1. PREAMBLE
• 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)
2. PAYMENT PERIODS ANALYSIS
2.1.1PRESENT SCENARIO
???
2.1.2 EXEPECTED/IDEAL SCENARIO
???
2.2 OTHER PAYMENTS
Inconsistence between selling day and payment day Exchange rate not displayed on seller sheet
3. BANK EXCHANGE RATE
4. MERCHANT/BANK LOAN COMMON ACCOUNT
Remittance delays after full repayment (Months) Inconsistent deductions Deductions on non beneficiaries
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
5. WITH HOLDING TAX
• Industry must address the challenges to ensure removal of the inequities along the tobacco value chain.
• Your input is welcome
6. CONCLUSION
THANK YOU ALL FOR YOUR ATTENTION