Tonse govt increases tax free band to K100 000: Introduces tax on bets
Finance Minister Felix Mlusu has announced an increase of tax free band from K45,000 to K100,000, a tax measure which was announced in the K722 billion provisional budget but was not implemented.
Mlusu said when he presented the 2020/21 national budget in Parliament on Friday.
He said government realizes the need to increase disposable income for salaried employees and enhance their purchasing power.
“In this regard, Government has increased the Pay As You Earn zero bracket from MK45,000.00 per month to MK100,000.00 per month,” he disclosed.
The Finance minister said government is aware that this adjustment is huge and to minimize its impact on the base for Personal Income Tax, the 15 percent middle bracket under the Pay As You Earn regime has been removed.
Meanwhile, the fiscal plan has covered a litany of promises that the Tonse Alliance made ahead of the June 23 Fresh Presidential Election as well as in President Lazarus Chakwera’s first State of the Nation Address (Sona) delivered in Parliament last Friday, such as the increase of the tax free band to K100 000 from K45 000 and increase in minimum wage to K50 000 from the current K35 000.
“Under the Tonse Alliance Government, the 2020/2021 budget will focus on: achievement of sustainable and inclusive growth; macroeconomic stability; and sound financial management.
“These objectives will be pursued through transparency and accountability, rule of law, enhanced resource mobilisation, efficient resource utilization and provision of relevant infrastructure,” said Mlusu.
The Finance minister said the 2020/2021 Budget has been developed under the Theme “Living the Promise”.
“Madam Speaker Government has also increased the Withholding tax threshold for casual labour from MK15,000.00 to MK35,000.00 per transaction.
“Government recognizes the need to improve the welfare of the people, especially those that are engaged as casual labourers and earn modest incomes for basic needs,” he said.
Mlusu said government has noted increased participation in betting and gambling transactions including lotteries and in order to ensure taxpayer compliance and encourage submission of income tax returns, a 20 percent withholding tax has been introduced on winnings from betting and gambling transactions including lotteries.
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Tonse alliance should humbly tell us to ‘whom 50 pin should apply’? Because there are these pple who are houseworkers and others for companies,to my side it’s so uncalled for for a houseowner to give a house maid 50pin?
Good move.kumayamika zikakhala bwino.
There is no reason to rejoice. Soon u will discover that the Kwacha will depreciate rapidly to the extent that those who were receiving above k45,000 will be above K100,000 and since the 15% middle bracket has been removed the excess will be taxed at 30%! Zinazi osamangoombera mmanja.
The UDF govt once did this.
Heart full of hate and jealous. Changing the tax bracket has nothing to do with the value of the kwacha. Any economist worth one’s salt knows that this is a challenging economic environment for the whole world and this budget reflects that. It’s clearly evident for all to see that the esteemed minister has strong command of global/local fiscal policy, superior financial management and implementation of complex systems across large organisations Give credit where credit is due. This budget is one step in the right direction and donor confidence will be boosted by the minister’s vision like never before leading… Read more »
Any economist knows that simply increasing wages eventually increases the price of everything until equilibrium is met. Econs 101. Lipsey Umbuli ndi matenda
Correct. that minimum wage is a cost of production meaning the price of goods and services will have to increase. kaya minibus fare has to go up because the conductor needs to be paid 50,000
These proposals don’t work in silo. They have been deliberately packaged to compliment each other towards a common cause: —> More money in Malawians pockets —> Increased economic transactions and participation—- > More revenue for public/private sectors — > enhanced service delivery through reinvestment projects –> Increased demand for jobs/services to meet supply needs —-> Economic expansion and maturity —-> Moving forward together —> Success story for Malawi.
Those who want to continue giving money to a few families and selling government assets to Thompson Mpinganjira and Mulli to be sidelined from now until forever and ever. Amen
Don’t hate Mpinganjira or Mulli Mulungu anawadalitsa inunso muyesese kuchitira china chake dziko lino kusiyana ndi kumangonena za wanthu. Mulli alinso ku Mozambique.
Ma cadet onse zawo
Zamveka koma tikufuna timve za
1
Fuel MK400.
Free electricity and water connections
MK50 pin minimum wage.
Passport MK14,000
Driving licence MK20,000 which will not expire
Cadets are used to steal hence such quietness. Dpp MBAVA ZENI ZENI
Nyau inu
YES! Proudly nyau and rightful owners of Malawi.
Boma simuzaliwanso. Iwalinanitu zobwelera in govt anytime soon.
Kapena tinyengelele ma MP ikhale motion in the house?
Kodi ndekuti izakhala with effect from the start of the financial year?
Aboma imvani izi. Mufune musafune, wantchito waine saangalandire fifty pin. Pangani zomwe mumaziwazo
Please K50,000 per month sindikuiwona apa .Kodi ili kuti.Mind you our wages are too little and if I casted my vote in your favour it is because of wages increase,unfortunately it does not seem to appear in your budget.Can I have my vote back please,otherwise mademo basi.