The newly appointed Finance Minister Felix Mlusu has lied to Malawians that Government will effect a tax free band from K45,000 to K100,000 in the provisional budget, Cables can reveal.
According to a statement from Treasury, the tax free band can’t be effected now because the enabling taxation amendment bill wasn’t presented and passed during the last sitting of Parliament.
The development has not gone down well with Malawians who have since expressed their anger on social media.
On June 30, new Minister of Finance Felix Mlusu announced new measures in the provisional 2020/21 budget to increase the tax free bracket from MK45,000-MK100,000 along with a proposed increment in the minimum wage from MK 35,000-MK50,000.
But in a statement released on Tuesday the Ministry says the new measures will have to wait for an amendment to the Taxation Act.
“The public may wish to know the National Assembly did not have enough time to deliberate and pass the taxation amendment bill before adjourning sine die,” said Peterson Ponderani, acting secretary to the treasury while reiterating government’s commitment to ensure that the measures are implemented.
Parliament allowed government to spend for the next three months to give the new administration ample time to prepare a budget based on its policies and aspirations.