BLANTYRE-(MaraviPost)-Innovation and Digital Transformation expert Bright Chidzumeni has warned that recent tax and revenue measures announced by the Minister of Finance, Joseph Mwanamveka,are likely to reduce disposable incomes for Malawi’s working class.
In an interview with Maravi Post, Chidzumeni explained that salaries will now be taxed at higher rates, with workers earning between MK1.5 million and MK10 million expected to pay 35 percent in Pay As You Earn (PAYE).
He said additionally, fees for bank-to-bank transfers and mobile money transactions are set to increase, potentially slowing progress toward a cashless economy.
According to the expert,mobile money transfers of K100,000 or more will now attract an extra 0.05 percent charge, while all bank-to-bank transactions will incur the same additional cost.
Said Chidzumeni, “The Value Added Tax (VAT) has also been raised from 16.5 percent to 17.5 percent, meaning that most goods and services will become more expensive, except for those exempt from VAT.
“Small-scale investors are also affected, as investment income from stock market gains will now be taxed at 35 percent, reducing returns for those relying on limited income streams.”
He further estimated that individuals earning above K1.5 million could see around 40 percent of their income going to the state under the new measures, up from roughly 30 percent previously.
The expert noted that while the policies will boost government revenue, they will simultaneously reduce disposable income for ordinary citizens.
Reflecting on the broader economic context, Chidzumeni highlighted that taxation alone cannot resolve Malawi’s fiscal challenges.
“Despite higher taxes, the government’s expenditure often exceeds output.Production, not taxation, is the real solution to revenue and foreign exchange shortages,” he said.
He further suggested that Malawi’s welfare-oriented economy pressures authorities to find more sources of revenue, even as ordinary citizens face rising living costs.
The post Expert sounds alarm on rising taxes: Revised Malawi’s 2025/26 Fiscal Plan appeared first on The Maravi Post.