In September, Treasury may propose tax increments due to one or more factors, but the private sector has already expressed that should there be an upward tax review, businesses are already burdened and cannot afford pressure from the MRA.

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI), represented by its head of real sector and macroeconomic policy, Hope Chavula said the tax system should support economic growth and not disrupt business activities. “Government should plan to obtain more revenue from the introduction of new businesses and growth instead of existing ones and not increase tax. The private sector needs fiscal space to develop such as tax breaks as incentives under specific programs.” stressed Chavula, during his presentation at the 2019/20 pre-budget consultation meeting in Blantyre last Friday.

In March this year, the Mid-Year Budget Review presented by then Minister of Finance Goodall Gondwe, showed that corporate tax underperformed during the first half of this fiscal year as figures show that a 20.3% drop was registered, when compared to figures from the same period in 2018. According to the presentations by the minister, Treasury amassed K479 bn, which was lower than K456.7 bn collected last year.