On Monday evening, Finance Minister Jospeh Mwanamvekha withdrew the proposal of 1% tax on all non-bank mobile money transactions. Succumbing to pressure, the minister has received backlash from various entities, which did not approve of the 1% tax. Consumers Association of Malawi (Cama) has commended Government for withdrawing one percent final withholding tax on Non-Bank Mobile Money Transactions.
Cama Executive Director John Kapito said the withdraw of the tax had a positive impact on livelihoods of many Malawians who have now adopted usage of the mobile phones as means of financial inclusion. Cama is therefore thanking the Minister of Finance that it pleased him to withdraw this tax, we are thankful to have such a listening Minister and Government,” said Kapito.
Finance, Economic and Development Planning Minister Joseph Mwanamvekha told Parliament on Monday that Government has withdrawn the tax, which was proposed in the 2019/20 national budget. Mwanamvekha said that instead, government would introduce a 20% withholding tax on interest earned by Trust Funds and commission to mobile network operations.