Exploring Carbon Tax on the Moatize – Nkaya Nacala Rail: Sustainable means for Malawi to generate possible USD100 million annually

Phiri Kampanje, Brian (2022): Exploring Carbon Tax on the Moatize – Nkaya Nacala Rail: Sustainable means for Malawi to generate possible USD100 million annually.

Abstract

This paper briefly analysed the social costs and environment impact of the Moatize- Nkaya Nacala Rail on the Malawian communities as well as the economic impact on the country. The findings are that Malawi is worse off than before in view of poor negotiations and failure to enter into agreement with Mozambican Government. It is recommended that Malawi must introduce a carbon levy of USD5.00 per tonne and earn at least USD100,000,000.00 in each fiscal year. This money should be used for restoration of the environment across the country but also serve the affected communities. This will be a guaranteed source of much needed forex as well.

• Item Type: MPRA Paper
• Language: English
• Keywords: Carbon; Tax; Rail; Coal; Malawi; Forex
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H27 - Other Sources of Revenue

References

Centre for Environmental Policy Advocate (2014) Assessment of Policy Implementation of Relocation Programmes: A Case of Nacala Railway Project accessed at https://cepa.rmportal.net/Library/natural-resources/Assessment%20of%20Policy%20Implementation%20of%20Relocation%20Programmes%20-%20A%20Case%20of%20Nacala%20Railway%20Project.pdf

Chikoko, Rex. (2015) “Government gives up taxes to Vale”, Nation Online, 24th July 2015 accessed at https://www.mwnation.com/government-gives-up-taxes-to-vale/

Malawi Extractive Industries Transparency Initiative Report (2016/2017) Malawi Revenue Authority (2020) New Tax Measures 2020 accessed at https://www.mra.mw/tax-update/new-tax-measures-2020

Nyasatimes (2012) “Brazil’s Vale to build rail lines in Malawi”, 11th January 2012 accessed at https://www.nyasatimes.com/brazils-vale-to-build-rail-lines-in-malawi/