In a pledge outlined in the MCP 2019 manifesto, President Chakwera vowed to eliminate PAYE tax on incomes of up to K100,000. Fulfilling this commitment in his inaugural budget shortly after assuming office, Chakwera has now elevated the threshold, extending the tax-exempt bracket to K150,000.
This adjustment was formally announced by Finance Minister Simplex Chithyola during the budget address in Parliament.
“Madam Speaker, to cushion employees in formal employment from the effects of the currency alignment, the Government has increased the zero Pay as You Earn (PAYE) bracket from MK100,000 to MK150,000. Accordingly, the new monthly PAYE structure will be as follows: i. First MK150,000 will be taxed at 0 percent. ii. next MK350,000 will be taxed at 25 percent. iii. next MK2,050,000 will be taxed at 30 percent; and iv. excess of MK2,550,000 will be taxed at 35 percent,” said Chithyola.
The progress signifies the populace’s contentment with the endeavors of President Lazarus Chakwera, prioritizing their well-being. Consequently, it portends a probable renewal of his mandate in 2025, as there appears to be a lack of viable alternatives within the opposition. Rather than focusing on substantive matters, such as governance policies, the opposition seems preoccupied with trivialities like jostling for the leader of opposition in parliament.
