Tax relief on the way? Mwanamvekha hints at review of ‘temporary’ levies on smartphones and internet data

Finance Minister Joseph Mwanamvekha has signalled that the government is preparing to review a raft of taxes imposed on various goods, insisting the levies were only ever intended as temporary measures.

Mwanamvekha made the announcement on Thursday in Lilongwe during the annual Digital Africa Summit at the Bingu International Convention Centre (BICC), responding directly to a request from Information Minister Shadric Namalomba.

Namalomba had publicly appealed to his fellow minister to scrap taxes on smartphones, internet data and other equipment used to facilitate communication and the spread of information – a move that would likely be welcomed by millions of Malawians grappling with the rising cost of staying connected.

Mwanamvekha said some of the taxes had been introduced to help stabilise the country’s economy, pointing to the difficult circumstances the government inherited when it came into office last year.

‘Without the taxes we introduced, we might have struggled to provide Malawians with services in health, education and other areas. However, these taxes were only temporary measures, and we are now going to review them for Malawians,’ Mwanamvekha said.

The minister’s comments will be seen as a significant signal that relief could be on the horizon for consumers and businesses who have borne the brunt of the levies, though no timeline was given for when the promised review would take place or which taxes might ultimately be scrapped or reduced.