New taxation system blow to middle income earners-economist

Economist Boyd Hamela has said new taxation system will greatly affect middle income earners as they will be taxed heavily despite getting the 100,000 tax free.

Hamela has made the remarks following the jumping of taxation threshold percentage from 0 to 30 percent.

“Increasing the tax threshold with that percentage is an anomaly,” said Hamela

Hamela however said government might have reached that decision to control inflation.

In a separate interview Malawi Congress of Trade Unions MCTU Secretary General Dennis Kalekeni said they will critically analyze impacts of newly formulated taxation guidelines to middle income earners.

However Kalekeni said the Union is happy that government has lived by its promise to increase the tax free band.