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.
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