Malawi: Parliament Halts Contentious Tax Bill As Public Fury Mounts

2 December 2025
Nyasa Times (Leeds)

Parliament has failed to pass the highly contentious Taxation (Amendment) (No. 2) Bill of 2025 after deep divisions erupted in the House over a raft of new tax measures that many lawmakers said would punish struggling Malawians and cripple businesses already operating on thin margins.

The Bill proposes some of the most far-reaching tax changes in recent years, including:

A 0.05% levy on mobile money and bank transfers above K100,000

Keep up with the latest headlines on WhatsApp | LinkedIn

A minimum alternative tax for companies with turnover above K5 billion

Scrapping the long-standing capital gains tax exemption on shares held for over a year

Lowering the threshold for the 40% corporate income tax rate from K10 billion to K5 billion

Adjusting PAYE bands

Raising withholding tax on betting and gambling winnings from 10% to 15%

The debate quickly fractured as MPs openly clashed over the potential fallout of the measures. Lawmakers warned that the changes--coming at a time of rising inflation, weakened purchasing power, and soaring unemployment--would further suffocate low-income households and force more companies into distress.

Several MPs demanded that government withdraw the bill entirely.

The Speaker was eventually forced to halt proceedings after the chamber descended into heated exchanges, with the House agreeing to delay the vote to allow members more time to agree on a unified position.

But the tension is not confined to Parliament.

Public servants are already organising demonstrations to block the implementation of the new taxes, arguing that the proposals amount to an economic assault on workers whose salaries have remained stagnant while the cost of living has spiralled out of control. Union leaders say the measures--especially the PAYE adjustments and mobile money levy--will "push civil servants deeper into poverty."

If enacted, the Bill would also grant the Malawi Revenue Authority expanded enforcement powers and compel banks and e-money providers to remit collected levies within 14 days.

As the nation watches closely, lawmakers are now voting, with pressure mounting inside and outside Parliament for a decisive political stand on a bill that could reshape Malawi's tax landscape--and its social stability--for years to come.

Read the original article on Nyasa Times.

Tagged:
Copyright © 2025 Nyasa Times. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.