Malawians hit with extra tax burden

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Goodall Gondwe and Peter Mutharika

Malawians are to dig deep in their pockets to pay taxes as Malawi Revenue Authority (MRA) is expected to collect K748 billion for the 2016/17 budget.

Goodall Gondwe and Peter Mutharika
Gondwe and President, Peter Mutharika punch more taxes on Malawians. (Library).

Malawi Minister of Finance Goodall Gondwe said the budget will get 80 percent of support from locally mobilized revenue.

“Tax revenue is expected to rise as the MRA is to collect K748 billion against the proposed target of K698 billion suggested by them,” said Gondwe. The minister added that government is to set standard tax on goods that were tax free in the country as one way of helping MRA to meet the target.

Economics Association of Malawi President Henry Kachaje has since commended the move arguing that government has been ‘lenient’ on tax collection in Malawi.

Malawi is expected to use  K1.2 trillion in the 2016/17 fiscal year with the largest share going to the agriculture ministry followed by ministry of education.