By Burnett Munthali
The opposition Democratic Progressive Party (DPP) has predicted tougher times ahead as the tax collection target continues to rise.
Joseph Mwanamveka, the DPP’s spokesperson on finance, has made this observation following the announcement of the new revenue target for the Malawi Revenue Authority (MRA).
The MRA has been assigned to collect 4.3 trillion kwacha in the 2025/26 national budget.
This represents a significant increase from last year’s target of 3.3 trillion kwacha.
In an interview with MIJ Online, Mwanamveka expressed concerns over the feasibility of achieving this target.
He questioned where the additional revenue would come from, stating that it would only impose a heavier financial burden on Malawians.
Mwanamveka warned that raising the tax collection target without corresponding economic growth could strain taxpayers.
He argued that the government needs to consider policies that stimulate business growth to expand the tax base rather than increasing pressure on existing taxpayers.
The DPP spokesperson also advised the government to implement measures aimed at ensuring adequate foreign reserves.
He emphasized that a lack of sufficient foreign reserves could lead to economic instability and further weaken the local currency.
Mwanamveka urged policymakers to focus on strategies that enhance foreign exchange earnings and reduce dependency on external borrowing.
He highlighted the need for reforms in key economic sectors such as agriculture, mining, and manufacturing to boost revenue generation.
As the government pushes for higher tax collection, concerns remain over its potential impact on businesses and individual livelihoods.
The debate over balancing revenue generation and economic sustainability is expected to continue in the coming months.
