The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says it sees the proposed K11 trillion 2026/27 National Budget as balancing relief and incentives with protective and supportive measures for domestic manufacturing.
In its commentary on the statement Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha presented in Parliament in Lilongwe on February 27, the chamber said the proposed fiscal plan also ensures compliance oversight for larger State-owned enterprises.
The private sector lobby group said the dual approach seeks to stimulate private sector growth without compromising fiscal discipline.
Reads the commentary in part: “MCCCI recognises the 2026/27 National Budget reflects a deliberate production-oriented and relatively private sector-friendly policy stance, emphasising small and medium enterprises [SMEs] support, domestic manufacturing, agricultural transformation and strategic investments in infrastructure, energy and human capital.”
The chamber has since welcomed the measures aimed at simplifying tax compliance, promoting import substitution, strengthening industrial linkages and enhancing resource allocation to high-impact sectors such as agriculture, tourism, mining and energy.
But the chamber said it noted that while these allocations and reforms have the potential to stimulate broad-based growth, industrial competitiveness and export diversification, the success will depend on efficient execution, policy consistency, fiscal discipline and enabling private sector participation.
In the proposed budget, the government has raised the mandatory registration threshold for value added tax (VAT) from the annual turnover of K25 million to K50 million. This means that businesses with an annual turnover below K50 million will no longer be registered for VAT and will not be required to operate under the Electronic Invoicing System (EIS) that is replacing Electronic Fiscal Devices.
MCCCI said this reduces accounting and administrative costs and improves cash flow management as well as lowering audit exposure while strengthening SMEs survival prospects.
In an earlier interview, Centre for Social Concern economic governance officer Agnes Nyirongo said the allocations in the proposed budget demonstrate recognition that human capital development is central to reducing poverty.
“It demonstrates a clear commitment to social sector spending, particularly in health and education,” she said.
However, Nyirongo warned that funding levels alone do not guarantee impact.
The fiscal plan has also offered simplified tax regime by introducing final withholding taxes for residential rental income, capital market transactions and the gaming sector, which the chamber argues reduces annual filings , enhances predictability and minimises disputes with tax authorities.
Treasury has allocated K1.334 trillion or 12.2 percent of the total budget to agriculture, tourism, mining and manufacturing sectors.
Speaking when he presented the budget statement on Friday, Mwanamvekha said the fiscal plan has been formulated to restore macroeconomic stability, rebuild confidence and lay the foundation for inclusive and resilient growth.
“Government will strengthen domestic revenue mobilisation efforts, including broadening the tax base, enhancing compliance and modernising tax administration, while protecting low-income households and the productive sector,” he said.
The proposed budget was formulated on the assumptions of gross domestic product (GDP) growth rate of 4.1 percent, financial year end inflation estimated at 15 percent, nominal GDP of K31.5 trillion and policy rate of 18 percent.
