Victoria Pharmaceuticals Limited v Attorney General (Ministry of Finance) and Malawi Revenue Authority

Abstract

This case involved an application by Victoria Pharmaceuticals Limited seeking an injunction to stop the Malawi Revenue Authority (MRA) from demanding taxes and duties on imported raw materials and equipment. The company argued that it was entitled to a tax holiday and duty‑free incentives under both a 2011 Memorandum of Understanding (MOU) with the Government of Malawi and a later Framework Agreement (FA) with Central Medical Stores Trust (CMST). MRA and the Attorney General opposed the application, arguing that the tax holiday under the MOU expired in 2016, and that the revised FA could not bind the government because the Ministry of Finance was not a party to it, raising issues of privity of contract. The court held that the government could not be bound by the FA, confirmed that the applicable Customs Procedure Codes were correctly applied by MRA, and that VAT was payable. It further held that the refusal to issue a Tax Clearance Certificate was lawful, and that any taxes paid could be refunded under the Customs and Excise Act if the applicant eventually succeeded. The court dismissed the application for an interlocutory injunction with costs.