MCP Accuses Government of Overtaxing the Struggling Majority

The opposition Malawi Congress Party (MCP) has criticised the government’s new tax measures, warning that increases in Value Added Tax (VAT) and adjustments to the Pay As You Earn (PAYE) system will worsen the financial strain on already struggling Malawians.

Delivering the party’s response to the Mid-Year Budget Statement, MCP’s appointed budget spokesperson Eisenhower Mkaka said the tax framework introduced by the Democratic Progressive Party (DPP)-led government will shrink disposable incomes and reverse economic gains made in recent years.

“People who are already struggling are being asked to pay more,” Mkaka said.

He further raised concern over new levies on electronic transactions, cautioning that they could slow Malawi’s growing shift toward digital payments.

Mkaka argued that the budget offers little relief or stimulus for ordinary citizens, calling on government to review the measures and prioritise policies that ease the cost of living rather than increase it.