1. TOBACCO PAYMENT SYSTEMS BY FELIX THOLE - TOBACCO ASSOCIATION OF MALAWI

2. Preamble Payment period Analysis Bank Exchange Rate Merchant/Bank Loan Common Account Withholding Tax Dollar payment Conclusion

3.  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

4. 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 )

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8.  Inconsistence between selling day and payment day  Exchange rate not displayed on seller sheet  Remittance delays after full repayment (Months)  Inconsistent deductions  Deductions on non beneficiaries

9.  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

10. Industry must address the challenges to ensure removal of the inequities along the tobacco value chain. Your input is welcome