By Edwin Mauluka

President Peter Mutharika has assented to five bills passed during the 52nd Session of Parliament, which met for the 2025–2026 Mid-Year Budget Review. A decision on the controversial Community Development Fund (CDF) Bill, however, remains pending.

Presidential Press Secretary Cathy Maulidi told The Forum that the president has signed into law the following:

Act No. 24 of 2025: European Investment Bank (Malawi M1 Rehabilitation IIC) Loan Authorisation

Act No. 26 of 2025: OPEC Fund for International Development (Jenda Supply and Sanitation Project) Loan Authorisation

Act No. 27 of 2025: Appropriation (Amendment)

Act No. 28 of 2025: Taxation (Amendment)

Act No. 29 of 2025: Value Added Tax (Amendment)

“I can confirm that the president has signed the five bills,” Maulidi said. “Regarding the CDF Bill, it remains on his desk and is undergoing thorough review before a final decision is reached. The president is still within the legal timeline and will decide in due course.”

The Taxation Amendment introduces new taxes and adjustments aimed at broadening the revenue base, including:

0.05% levy on mobile money and bank transfers, applied uniformly
(mobile money transfers below MWK100,000 exempt)

Minimum Alternative Tax (MAT) for companies with turnover above MWK5 billion and over three years old
(amounts paid beyond normal corporate tax treated as future tax credits)

Capital gains tax now applies to all share disposals regardless of holding period

Supernormal profits tax threshold lowered from MWK10 billion to MWK5 billion
(profits below MWK5bn taxed at 30%; profits above at 40%)

The revised PAYE structure is as follows:

First MWK170,000 taxed at 0% (25% bracket removed)

Next MWK1.4 million: 30%

Next MWK8.43 million: 35%

Income above MWK10 million: 40%

The amendments also remove MWK100,000 and MWK500,000 thresholds on betting winnings, meaning all winnings will now be taxed, with withholding tax rising from 10% to 15%.

The Value Added Tax Amendment increases VAT from 16.5% to 17.5%.

Opposition MPs criticized the measures as punitive during a period of economic hardship.
But Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha defended the approach:

“If we do nothing, the economy will be in trouble. We need to make tough decisions now so that our economy goes back on track.”

Government also announced non-tax revenue plans to support fiscal stability, including: