Malawi civil servants’ pay rises, minimum wage up:Tax imports of veggies, sugar and cement

Pegged at K1.7 trillion, Minister of Finance, Economic Planning and Development Joseph Mwanamvekha on Monday September 9 2019 presented the first budget of the second-term of President Peter Mutharika administration up from K1.4 trillion from last year, seeking to sustain economic stability while bolstering growth rate.

alights from his vehicle to deliver the budget statement.-Photo by Lisa Kadango, Mana

Mwanamveka announced salary increases for junior civil servants by some 10 to15 % and raised minimum wage  from K962/day (about K25,000/month) to K1, 346/per (about K35,000/month).

The country;s purse keeper said the wage bill is projected to be at K443.4billion, which is 7.1 percent of gross domestic programme and representing a 12.6 percent increase from last fiscal year’s approved figure K393.6 billion.

“Lower grades in the civil service are expected to get relatively high salary increments than the high ranking grades,” said Mwanamveka.

On income tax, govt has increased PAYE tax-free bracket from K35 000 to K45000 “to protect the low paid workers.” He said this takes into account the cost of living.

Mwanamvekha also said government will continue with the Youth Internship Programme designed to recruit youths aged between 18 and 30, to be placed in various ministries, departments and local councils.

He committed K4.5 billion for the Youth Internship Programme targeting at 2 000 young people to be recruited this year.

Mwanamvekha also said government has introduced tax to all imported vegetables, fruits, cement and sugar, to encourage and promote local products.  He said a full list of those imports to face tax will be gazetted.

The Finance minister said the importation tax on motorcycles dubbed ‘Zobanduka’ has been reduced “to ease transportation in rural areas.”

Government has also introduced a Carbon tax on vehicles to reduce greenhouse gas emissions.

As Malawi’s economy is largely reliant on agriculture with sales of tobacco, tea and sugarcane;  in terms of allocation, Mwanamvekha said K 167 billion has been given to the Agriculture sector up from K150 billion in the 2018/2019 financial year.

The Farm Input Subsidy Programme (Fisp) in the 2019/20 growing season—a crucial food security programme for rural farmers—has been allocated K35.5 billion, which will reach out to 900 000 beneficiaries for both fertiliser and seeds from the 2018/19 revised figure of a cut from K41.5 billion last year which targeted one million beneficiaries.

The Decent and Affordable Rural Housing Project—the President’s signature project—and another social spending initiative, has been allocated K10 billion, which is the same amount from the 2018/19 fiscal year with some 8 000 houses expected to be constructed and rehabilitated.

He said out of K10.0 billion, K600 million has been earmarked for the construction of houses for person with albinism.

Mwanamvekha, appointed in May by President Peter Mutharika after he narrowly retained power, said the government was battling to curb the budget deficit and a rising government debt stock, which he said stood at 62% of GDP in December 2018.

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THE APOSTLE
Guest

$47 AS MINIMUM WAGE ????

KIKIKIKIKIKI LAST YEAR WHEN I LANDED AT CHILEKA AIRPORT FROM EUROPE, I CHANGED $1000 DOLLARS PA AIRPORT NO WONDER I WAS QUESTIONED BY THE TELLER KUTI WHERE DID YOU GET THE MONEY???

I TOLD HER FOLLOW ME KU HOTEL…..HAHAHAHAHAHAHA TODAY SHE IS MY GIRLFRIEND AND ANASIYA NTCHITO KU FDH BANK. COZ MONTHLY ALLOWANCE IMENE NDIMAMUPATSA IS ENOUGH FOR HER

SHE CAN EVEN BUY A FEW BOYFRIENDS TO DICK HER COZ INE KULIBEKO HAHAHAHAHAHA

Mamo Lagen
Guest
Mamo Lagen

35000MWK MINIMUM WAGE AND AM JOBLING IN LILONGWE WHERE I PAY RENT(20000.00)+WATERBILL(5000)+ELECTRICITY(4000)+TRANSPORT TO WORK(15000)+MAKHALA 3BAGS(45000)+TOILETERIES(10000)+UFA(20000)+NDIWO 1 TO 30(30000)+ZOONJEZERA ZINA(20000).BILL YANGA PAMWEZI WONSE KUTI NDIKHALE NDIMOYO MMALAWI 169,000MKW KOMA SALARY 35000.00 YONDIPATSA ABWANA APO FEES YAANA PALIBE YOSUNGA KUBANK PALIBE. MAYO INEEEEEEEEEEEEEEEEEEEEEEEEEE.Corruption shall never end in Malawi.

Njolo mpilu
Guest
Njolo mpilu

watsala pangono atiitane ma c8vil servants tikamwe tea ku sanj8ka.
bribery at its peak. opitao akamwa tea yo kukodza munjilamu pobwerako kukafika ku den kulibe ndiwo.
TOO MUCH IDOLIZING, GLORYIFYING DPP.

Maria
Guest
Maria

Pay rise, kkkkkkkkkkkkkkkkkkkkkkkkkkk

Sona Moyo
Guest
Sona Moyo

Ndizingati ndalama zomwe ma civil servants titchukire nazo?

ben 10
Guest
ben 10

Nde mukuti mwapangapo chani anzanu anatiuza kuti 100,000 tax free nde inu mukuti 45 Muchoke bola Tambala okuda

Kaitano
Guest
Kaitano

A yayayayayayayayaya K25,000.00 or K35, 000 per month? OK zovuta izi.

chapunthuka
Guest
chapunthuka

minimum wage of MK35,000= 706 south african rand, 47.7 US$. At that pace of (no improvement) we shall remain poor for the next five years. Mongotula pansi briefcase ena ayendeseko please. azanthu a ku Zambia akutisiya kutalitali.

Chiswa B
Guest
Chiswa B

Kkkkk gross domestic program

Uyo
Guest
Uyo

Kudos MoF for wanting to protect local industry. However justification of local from our company ILLOVO is highly questionable. Yes it is a big employer but these guys are not here for the long haul. Since the sale from Sucoma/Lonrho days, besides routine maintainance and house keeping, ILLOVO have not been part of development to either dwangwa or nchalo. They fool government by supposed fractional food security that does not reach a substantial number and a clinic that helps a few. Then Limbe head office, OMG, it’s owned by an Indian that is receiving rent and is one of the… Read more »