Malawi low income earners smile as Tonse govt increases tax free band from K45 000 to K100 000

The Tonse Alliance led government has increased the tax free band from 45 000 to K100 000.

Elsienhower Mkaka interacts with Minister of Finance in the Chamber-pic by Lisa Kadango

This was revealed by Finance Minister Felix Mlusu on Tuesday while presenting the four month provisional budget.

Mlusu says the increased is a deliberate move by government to ensure that Malawians have enough money in their pockets to purchase cheap fertilizer at K4 495 per 50kg bag.

“Each person will be allowed to buy at least 2 bags,” he said.

So what does the extension of tax free threshold base to K100 000 mean?

1. It means that those whose salary was below K100 000.00 will no longer be paying Pay As You Earn (PAYE) tax. Whatever your salary, you shall only be expected to make pension contribution but payee has been relieved from you.

2. Those whose salaries were above K100 000, from July, 2020, they shall be getting excess of K17 500 which was PAYE for the first K100 000 of their salary.

3. Besides, everyone who was receiving salary of K35 000 will be taking home K50 000 as minimum wage has been raised to K50 000

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chicco
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chicco

Malawi walkup, lets forget the past administration and wlcm the new one

Sarah sarah
Guest
Sarah sarah

Normally I would support minimum wage increase always but we are in a pandemic and an economic crisis, businesses are struggling to survive, so increase minimum wage in such a time when most of these business have been cutting down on expenses and even working hours, is a bad decision. The finance ministry should be coming up with ways to help businesses survive not execerbating the situation. If you want to help people and businesses during a crisis tax cuts and investment credits are things to go. Increasing tax band was good not increasing minimum wage.

Malaya Phiri
Guest
Malaya Phiri

Have we read the title before commenting?Increase tax free band.So why commenting about minimum wage? For working class people this is an increase by K17,500 per month! Minimum wage was K35,000 plus K17,500 it’s K52,500 so where is you argument people?

Zaya
Guest
Zaya

Some of us read the whole article; not just the title! At the bottom of the article you will find the details regarding the minimum wage

Mseuwaboma
Guest
Mseuwaboma

The minimum wage was raised just this past January. To raise it again so soon is counter productive, as many people who had two servants will lay off one and keep only one. I have laid off my gardener and will instead have someone coming in two or three times a week for less than the current minimum wage of MWK35,000. I can’t do without the maid (since I don’t know how to cook!), so I’m going to keep her even at the proposed MWK50,000 The Tonse Alliance needs a quick refresher course in Development Economics: In an extremely poor… Read more »

Donda wa Donda
Guest
Donda wa Donda

This is sounds more of boasting than presenting the real fact of the affair. Kindly fire everyone and cook yourself! the minimum wage is MK50,000 per month. Please take note.

Ray
Guest
Ray

Actually let them raise the minimum wage and see what happens to the price of fertilizer. Interesting times

Mseuwaboma
Guest
Mseuwaboma

You’re still a student. Everything is done for you. Not too long from now you’re going to be welcomed into the real world. There are so many bills to pay; not just wages: Rent, water, electricity, fuel, motor vehicle repairs, school fees, insurance, “black tax”, etc. You’re going to eat your words that time

Dausi
Guest

Don’t employ people if you can not pay a descent wage. They are also human and have defendants to care for.

Yaoo
Guest

Just say you are still poor my friend

phiriwaphiri
Guest

to primise is easy koma kuti adzapezeke kwa aliyense monga mwa lonjezo we shall see

goodson
Guest
goodson

The whole world is in recession. Companies are failing. That is when our world class minister of finance decides to raise wages

Let
Guest
Let

50,000 My foot. Wages should also be based on people’s ability to pay not just the food basket. Zikakhala zimenezi simuchedwapo.

Hedge
Guest
Hedge

This thing will haunt you. People will lose their jobs left right and centre. People can’t afford to pay domestics that. Prices will escalate as the Labour cost will be transferred to the consumer. Mwapala

MalawianCritic
Guest
MalawianCritic

We have incompetence running the government now. These positions need people who understand how economies work. This is running a countryy is not the same as running a church

Masilu ga liwata
Guest

chokapa mbuzi cadet iwe

Kwa
Guest
Kwa

Every houseboy who was recieving mwk 50,000 has just lost his job. Where on earth do you expect us to get this money.

Peloma Pepe
Guest
Peloma Pepe

Exactly! Tiyamba ma demo a salary increase very soon unless they revise our salaries upwards considerably.

If you’ve maid and guard ndekuti 100k yapita.

Kennedy
Guest
Kennedy

Now those hypocrite from Dpp can lean a lesson. It they’ll lean the had way no more lhomwelisation as many of them will be booted out malawi okomela aliyense ❤️❤️❤️❤️

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