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Malawi raises taxes and cuts development spending amid revenue shortfalls and donor delays.
Malawi’s 2025/26 Mid-Year Budget Review raises taxes on middle- and high-income earners, increases VAT to 17.5%, and introduces new levies, while cutting the development budget to K1.58 trillion amid donor delays and weak revenue collection.
Despite a higher tax-free threshold, the removal of the 25% Pay As You Earn bracket and a 30% minimum rate increase the burden on average citizens.
Critics highlight corruption risks, lack of transparency in public official redeployments, and underfunding of key sectors like agriculture and infrastructure, threatening progress toward the Malawi 2063 vision.
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Malawi aumenta los impuestos y recorta el gasto en desarrollo en medio de déficits de ingresos y demoras de los donantes.