MALAWI 2017/18 BUDGET SPEECH

The Minister of Finance, Economic Planning and Development, Goodall Gondwe, presented the Budget for 2017/18 to the parliament on 19 May 2017.

Highlights of the budget speech summarized:

  • The projected deficit is 3.9 % of GDP.
  • The implementation of fiscal and monetary policies has led to reduction of budgetary deficit (including grants) from 6.1 percent of GDP in 2013/14 to a projected 3.9 percent of GDP.
  • Government is imposing a single formula for interest on overdue tax for all tax types to reduce tax administration costs.
  • A single formula for penalties on late submission of returns for all tax types was also imposed.
  • Personal Income Tax measures, effective 01 July 2017:
    • The tax-free income bracket has been increased from K20,000 per month to K30,000 per month;
    • An Additional PAYE Bracket of 35 percent for Salaried Income of above MK3,000,000.00 per month is introduced.
  • The minimum wage has been increased from K19,000 to K25,000 per month. This means that all those who earn a minimum wage will be below the threshold.

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2017 CRS Technologies (Pty)Ltd. All Rights Reserved.