LILONGWE-(MaraviPost)-Malawi’s Parliament on Tuesday, December 2, 2025 passed the Taxation (Amendment) Bill, with 94 votes in favor, 49 against, and 2 abstentions, amidst opposition objections.
The bill introduces significant changes to the country’s tax landscape, including a levy on mobile money and bank transfers, and a minimum alternative tax on companies with a turnover of at least K5 billion.
The bill, which amends the Taxation Act (Cap. 41:01), also removes the exemption on capital gains taxes for shares held for more than one year, reduces the threshold for applicability of the 40% corporate income tax rate from K10 million to K5 billion, and amends Pay As You Earn (PAYE) and personal income tax rates.
Additionally, it removes thresholds for withholding tax on betting and gambling winnings, adjusting the rate from 10% to 15%.
The passage of the bill was not without controversy, as the opposition side objected to the amendments during a simple voice vote, prompting the House to go into division.
The voting pattern showed 77 MPs were absent, highlighting the significance of the bill and the differing views on its implications.
The introduction of a levy on mobile money and bank transfers has raised concerns about its potential impact on financial inclusion and the poor, who rely heavily on these services.
Critics argue that the levy may disempower rural communities, while the government sees it as a means to boost revenue.
The bill’s provisions are expected to have far-reaching implications for individuals and businesses alike.
The removal of the capital gains tax exemption and the reduction of the corporate income tax threshold will likely affect companies and investors.
The amendments to PAYE and personal income tax rates will also impact individual taxpayers.
As the bill becomes law, Malawians will be watching closely to see how the new tax measures will affect the economy and their personal finances.
The government has a responsibility to balance revenue generation with the need to promote economic growth and protect vulnerable populations.
The effectiveness of these measures will depend on how they are implemented and communicated to the public.
