By Burnett Munthali
A Member of Parliament for Nkhotakota Central, Sylvester Ayuba James, has proposed an increase in the daily mobile money transaction limit to boost tax revenue collection in Malawi.
James made the suggestion while contributing to deliberations on the Taxation Amendment Bill in Parliament on Tuesday, highlighting the potential benefits of raising the transaction ceiling.
He described the government’s shift toward electronic transactions as progressive, but cautioned that the current K1 million daily cap on mobile money transfers limits the volume of taxable digital transactions, thereby constraining revenue collection efforts.
Raising the transaction ceiling to a more significant amount could enhance the government’s capacity to collect more revenue through digital platforms, James argued, making a strong case for the proposed amendment.
The Malawi Congress Party has also backed the amendment of the Bill, but expressed concerns that the 15 percent tax on rental income could affect ordinary Malawians, as landlords may be pushed to increase rentals in response to the new tax burden.
The proposed amendment has sparked debate, with some arguing that it could have a positive impact on revenue collection, while others worry about the potential impact on low-income households and the broader economy.
The government has been seeking ways to increase revenue collection and reduce dependence on donor funding, making the proposed amendment a timely and relevant development.
As Malawi’s economy continues to grapple with challenges, the outcome of the Taxation Amendment Bill deliberations is being closely watched, with many stakeholders eager to see how the government will balance revenue collection goals with concerns about the impact on ordinary citizens.
The parliamentary debate on the Bill is ongoing, with lawmakers weighing the pros and cons of the proposed amendments and considering the potential implications for the country’s economic future.
