Taxation Amendment Bill passes in Parliament

Parliament has today passed the Taxation Amendment Bill which legalizes the increase of tax free band from K45,000 to K100,000.

The increase of the tax band is effective October, 2020.

The bill has also introduced a 20 percent withholding tax on winnings from betting and gambling transactions including lotteries.

The tax measures were part of the 2020/21 national budget which was passed last week.

Implementation of the tax free band was one of the key campaign promises of the Tonse Alliance led by Lazarus Chakwera who was voted president of Malawi in June.

The new tax free band was also in the provisional budget passed in July but was delayed due to Parliament’s failure to pass the amendment bill in July.

The delay led to criticism against the Chakwera administration as Malawians claimed that it is failing to deliver on its campaign promises.

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