The Minister of Finance and Economic Affairs Hon. Simplex Chithyola Banda, has today presented a revised budget for the 2024/2025 Fiscal Year, which includes significant increases in allocations for wages and salaries, as well as measures to enhance revenue collection.
The revised budget, increases the provision for wages and salaries by K201.2 billion, representing an 18.7% increase. This is largely due to the full impact of the salary adjustment that took place in November... 2023 and the employment of health workers.
The government has also introduced several revenue enhancement measures, including removing Value Added Tax (VAT) waivers on motor vehicle imports for privileged individuals like the President, Cabinet Ministers, Members of Parliament etc,
The mid-year budget also proposes full implementation of electronic excise tax stamps, and expanding electronic payments across revenue-collecting entities.
Other key measures include the opening of a voluntary tax compliance window for motorcycle operators who cause accidents in the country with uninsured vehicles.
“The budget has seen some cuts because we want to live within our means and expand the revenue base to ensure we carry out all Government services”, said Chithyola Banda.
The revised budget and revenue enhancement measures are expected to have a significant impact on Malawi's economy, and the Minister has urged all stakeholders to support these initiatives for the benefit of the nation.
