By Suleman Chitera
Lilongwe, Malawi — Minister of Finance Joseph Mwanamvekha has come out strongly in defense of the Taxation Amendment Bill, stressing the urgent need for enhanced revenue collection to address Malawi’s mounting economic challenges.
Speaking in Parliament, Mwanamvekha highlighted the gravity of the country’s financial situation, pointing to a significant debt burden that leaves little room for delay in implementing new revenue measures.
“We found a situation where public debt was about K24 trillion against revenue of K6 trillion… this means we are broke,” the minister said, underlining the stark gap between the government’s obligations and its income.
Mwanamvekha emphasized that even if the government were to halt all spending and allocate every kwacha of revenue toward debt repayment, it would take approximately six years to settle the nation’s debt. This stark reality, he argued, necessitates swift action to strengthen domestic revenue collection.
The Finance Minister also responded to concerns from members of Parliament who questioned the potential impact of the amendments on citizens and businesses. While acknowledging the challenges, he insisted that the bill is essential for fiscal stability, warning that further delays could exacerbate the country’s debt crisis.
The Taxation Amendment Bill, which seeks to revise existing tax provisions and expand the government’s revenue base, has sparked mixed reactions among lawmakers and the public. Supporters argue it is a critical step toward reducing Malawi’s dependence on external borrowing, while critics caution that increased taxation could place additional strain on already vulnerable households.
Mwanamvekha concluded by urging legislators to consider the long-term benefits of the bill, framing it as a necessary intervention to safeguard Malawi’s economic future.
