Government has introduced tax all imported vegetables, fruits, cement & sugar, to mention a few, to encourage & promote local products. Importation tax on motorcycles has been reduced “to ease transportation in rural areas.
On Income tax, government has increased PAYE tax-free bracket from K35,000-K45,000. He says this takes into account the cost of living. Minimum wage has been increased from K962/day (about K25,000/month) to K1, 346/per (about K35,000/month).
“This is to protect the low paid workers. Government has also introduced a Carbon tax on vehicles to reduce greenhouse gas emissions,” said Mwanamvekha when presenting the national budget in parliament today.
Finance, Economic Planning and Development Minister, Joseph Mwanamvekha, has pegged the 2019/2020 national budget at MK1.7 trillion with civil servants salaries and wages being allocated about MK443 billion.
According to Mwanamvekha, this allocation will, among other things, cater for a 10 to 15 percent salary increment for civil servants.
Mwanamvekha presented the budget this afternoon in Parliament in the Capital Lilongwe.
The budget has also allocated huge sums of money to key ministries such as education, health and agriculture with education alone getting about MK172 billion.
Mwanamvekha also announced a MK 35.5 billion allocation to this year’s Farm Input Subsidy Program.
There is also an allocation of MK10 billion to the National Food Reserve Agency for the purchase of maize to be stored in the national strategic food reserves.
Another MK10 billion has gone to the Decent and Affordable Housing Program for the construction of more houses for the needy.
According to Mwanamvekha, total revenues for this budget are projected to be at MK1.5 trillion.
He said the budget deficit will be financed through domestic borrowing and with the help of development partners.