Ministry of Finance, Economic Planning and Decentralisation says the Malawi Government has no plans to amend existing tax laws to introduce worldwide, pension receipts and death benefits taxes.
Secretary to the Treasury Cliff Chiunda said in a statement that the claims were “false, misleading and entirely unfounded”.
He said: “The ministry urges all stakeholders and members of the public to verify information and seek clarification on matters relating to public finance through official channels.
“The ministry remains open and fully committed to transparent, constructive, and inclusive engagement.”
Treasury’s reaction followed a statement by Malawi Congress of Trade Unions (MCTU) on Monday which condemned the proposal to introduce tax on pension receipts and death benefits.
MCTU secretary general Charles Kumchenga and president Kelvin Chifunda had argued in the statement that the proposal to tax pensions and death benefits weakens confidence in the pension system, discourages long-term savings and formal employment and undermines workers’ trust in government-led social security reforms.
Treasury has been soliciting inputs to feed into the 2026/27 fiscal plan through the pre-budget consultation meeting in Blantyre, Lilongwe and Mzuzu, but submission of proposals closes on January 30.
During the 2026/27 Pre-Budget Consultation Meetings, Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha said government is implementing a set of reforms anchored in the National Economic Recovery Plan aimed at addressing immediate macro-economic and social challenges while laying a strong foundation for sustainable and inclusive growth.
“In support of this, government has already announced and begun implementing a range of revenue-enhancing and expenditure control measures during the 2025-26 Mid-Year Budget Review,” he said.
In the 2025/26 Mid-Year Budget Review Statement, Mwanamvekha announced various tax and non-tax measures aimed at enhancing the government’s resource mobilisation drive.
For instance, the minister removed the 25 percent tax band on pay as you earn with incomes between K170 000 and K1.57 million now attracting 30 percent tax, those up to K10 million will be taxed at 35 percent while a new 40 percent tax rate applies to incomes beyond that threshold.
The minister also increased the value added tax (VAT) rate from 16.5 percent to 17.5 percent, introduced a 0.05 percent bank transfer levy and another 0.05 percent mobile money levy on mobile money transfers of above K100 000 to be paid by the sender.
A Treasury source on Tuesday confided that the talk about introduction of taxes on pension receipts and death benefits emanated from a study by an international organisation exploring means to expand Malawi’s tax base. However, the source said the study, whose questionnaire was sent to various organisations, was not concluded and does not form part of the Malawi Government policy.
