The Government Remove VAT On Factory Machinery For Improved Tech.
Value added tax has been removed for machinery in Malawi to try and get the country on an even playing field with production.
The removal of VAT is a confident step by the government to try and improve the economy and improve trade in this area. It is hoped that it will also promote the use of more advanced technology within this sector.
The aim is to encourage business to invest in the sector, but to do so with locally based businesses, will mean help in reducing their costs, so if VAT is taken away it will give more of an incentive to invest.
The general secretary of health and body products, Fredrich Changaya, said that the better the technology coming into the country will mean hopefully, local businesses will be able to employ more people.
He also stated that some companies were not able to compete in different regions due to their machinery being simply too old.
This has obviously been a bold move for the country, so we will have to wait and see if this improves the economy and local business.
The other main advantages of being able to buy new equipment and technology, will be the ability to possibly move to better premises, which will allow the businesses to expand.
It is always the case that the company wish to invest in the latest technology and expand their business, it will mean taking on more staff to use this new technology. Companies usually move to a location within 50 miles of where they’re presently based. Local transportation companies can usually cover machinery removals and factory removals at a low level, but if larger companies need a seamless transportation service, then they need the budget to do so.
The reduction in VAT will mean a company will be more willing to move premises and expand their business along with the technologies that they buy in.
Hanlon and Wright have many years experience of providing machinery factory removals either locally or across the world. Our experience has shown that companies are more likely to move and expand if the potential is there for increased sales and business. Larger more efficient machinery will mean a greater output at a more efficient rate which usually means bigger premises. This is where an experience removal service is needed.
Along with getting expensive machinery, factory equipment and plant hire to a new location, fitting, setup, installation to the point where everything is working seamlessly as if it had never been moved is the aim. On-site engineers are able to not only move equipment, but should be able to setup and configure the factory machinery at its new location.
It will be interesting to see how the VAT incentives will work long-term. If it clearly shows over the next year that businesses have been able to expand, work more efficiently due to the VAT breaks, then other countries and regions should start to think about this also in our recession hit times.
The author has worked as a factory relocation supervisor for over 11 years.
He would like to recommend hanlonandwright.co.uk as great machinery and factory removal specialists.