Presenting the full 2019/20 National Budget, the Minister of Finance, Joseph Mwanamvekha, revealed that government has introduced a 1% tax on all non-bank mobile transactions, based on the transaction amount.

According to the finance minister, the development is aimed at ensuring that a large number of citizens are motivated to contribute towards national building through payment of taxes and ensure that Government has scope to improve service delivery. However, Consumers Association of Malawi (Cama) disagreed with the development, stating that it will discourage the saving culture by low income consumers who do not have bank accounts.

Addressing journalists Monday, Cama Executive Director, John Kapito argued that an already destroyed structure cannot be developed. Kapito stressed that Cama will fight for these people as the tax will affect them is parliament passes the budget as it is. “I think our fight will be re-energized to the point where we will be on the street every day. Our role is to make sure that tax does not come in at all and that the people we are seeing out there do not lose their jobs,” he said.