We value your privacy

We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic. By clicking "Accept All", you consent to our use of cookies. Cookie Policy

Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Africanian
  • News
  • News 24/7
  • Politics
  • Business
  • Health
  • Sports
  • Travel
  • World
    • US
    • Russia
    • Europe
    • Asia
    • America
  • Events
No Result
View All Result
Africanian
  • News
  • News 24/7
  • Politics
  • Business
  • Health
  • Sports
  • Travel
  • World
    • US
    • Russia
    • Europe
    • Asia
    • America
  • Events
No Result
View All Result
Africanian
No Result
View All Result
Home Business

Malawi news: Parliament nods to tax free band raise

Parliament Monday passed the taxation bill allowing the government to increase the tax free band of Pay as You Earn (Paye) from K45, 000 to K100, 000 effective October 2020, among other things.

africanian
October 20, 2020
in Business
1 0
0
Malawi news: Parliament nods to tax free band raise
Share on FacebookShare on TwitterShare via Whatsapp

The tax free threshold of casual labour has also been increased from K15, 000 to K35, 000.

The adjustments would help freeing some disposable income to low income earners according to economic experts.

Passing of the bill also allows the government to earn a 20 percent withholding tax on all winnings from betting, gambling and lotteries.

Minister of Finance Felix Mlusu told journalists the bill would help increase level of disposable income for Malawians in the working category.

Related Post

Malawi: Government Calls for More Support in Education Sector

Malawi: Government Calls for More Support in Education Sector

October 4, 2023
Malawi: Cyclone Freddy’s death toll rises to 1,200

Malawi: Cyclone Freddy’s death toll rises to 1,200

March 30, 2023

Malawi: President Launches International Appeal for Help

March 15, 2023

Pope Francis Prays for Malawi Amidst the Wrath of Cyclone Freddy

March 15, 2023

“To employees, obviously, these amendments entail an automatic increase in their take home pay on the tax threshold. Similarly, for the casual labourors, their disposable income is going to improve by the increase in the band,” Mlusu said.

However, the bill would only come into effect once President Lazarus Chakwera assents to it according to Mlusu.

But in a separate interview, former minister of finance and Democratic Progressive Party spokesperson on finance, Joseph Mwanamvekha, said the new tax free band would only benefit few people that are in the formal sector.

He also said introduction of a 20 percent withholding tax on winnings from betting and lotteries could hurt the industry.

“There are so many ways government can widen the base other than exploiting the poor and the disadvantaged.

“Let me urge the government to expedite the delivery of one million jobs that were promised. Otherwise, this [the bill] only benefits a few, hence, having less impact on disposable income,” Mwanamvekha said.

Outside the chamber, debate has also ensued on timing for effecting the new law with other circles saying the tax regime should have been applied from July 1, 2020

Taxation expert, Emmanuel Kaluluma, said implementation of the law should have coincided with the commencement of the new financial year.

“This is how the tax rate structure works and it means 0 percent on K100,000 per month starts from the month of July 2020. Employers will have to adjust some employees at K100,000 below have overpaid and those above because of the removal of 15 percent will have underpaid for the months in question,” Kaluluma said.

A communiqué from the Secretary to Treasury to the Secretary for Human Resources at Capital Hill, ref no: FIN/ RPD/6/3/3/21, which we have seen, shows that the change will be effected for the entire fiscal year.

“Following this amendment, kindly be advised that calculation of income tax salaries of public servants for the 2020/21 fiscal year should be done as follows; first K1,200,000at 0 percent rate, next K34,800,000 at 30 percent rate and excess of K36,000,000 at 35 percent rate,” reads the communiqué in part.

Meanwhile, the august House agreed to re-introduce a 16.5 percent Value Added Tax (VAT) on cooking oil despite removing the same three years after its negative impact on the industry.

United Democratic Front spokesperson Lilian Patel asked the government to reconsider the decision stressing the decision will hurt the industry.

MP for Chikwawa North Owen Chomanika questioned the Minister’s rationale to re-introduce VAT on the cooking oil when the same house had removed the tax three years ago.

Thyolo Central legislator Ben Phiri requested the Mlusu to rethink the position of the bill, as it will suffocate the industry.

Mlusu, however, dismissed the fears emphasising the decision will not hurt farmers or consumers as the development will not increase cost of production.

Source: times.mw
Tags: Felix MlusuMalawitax freeValue Added Tax
africanian

africanian

Related Posts

Malawi: Government Calls for More Support in Education Sector
Culture

Malawi: Government Calls for More Support in Education Sector

by Africanian
October 4, 2023
Malawi: Cyclone Freddy’s death toll rises to 1,200
News

Malawi: Cyclone Freddy’s death toll rises to 1,200

by Africanian
March 30, 2023
Malawi: President Launches International Appeal for Help
News

Malawi: President Launches International Appeal for Help

by Africanian
March 15, 2023
No Result
View All Result

Africanian News

Is a dedicated project aimed at amplifying the voices of the African Ecosystem and Diaspora. We actively collaborate with initiatives to improve access to education and digital inclusion, both in traditional schools and through digital platforms, for African children.

It’s crucial to emphasize that none of the articles or images featured on our platform are intended for copyright infringement, neither now nor in the future. If you believe that any information, text, image, etc., may be subject to copyright and should be removed, please notify us by sending an email to info@africanian.com

Your dreams matter; your stories matter.

Feel free to explore collaboration opportunities with us. Share your articles, thoughts, interviews, experiments, or no-comment videos by reaching out to info@africanian.com. You can also subscribe to our mailing list to receive the latest updates from Africanian News.

News letter

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Log In

Sign In

Forgot password?

Don't have an account? Register

Forgot password?

Enter your account data and we will send you a link to reset your password.

Back to Login

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Accept

Add to Collection

  • Public collection title

  • Private collection title

No Collections

Here you'll find all collections you've created before.

No Result
View All Result
  • News
  • Politics
  • Business
  • Health
  • Sports
  • Entertainment
  • Tech
  • Travel
  • World

© 2025 JNews - Premium WordPress news & magazine theme by Jegtheme.