Dimba hails tax reforms as Parliament passes key amendment bills

By Dean Chisambo………

Malawi Congress Party (MCP) Finance Publicity Secretary has commended the government for introducing the Tax Administration Amendment Bill, describing it as a progressive step in strengthening tax systems in the country.

The bill was passed into law on Tuesday alongside five other amendment bills in Parliament sitting in .

Dimba, who is also Member of Parliament for Phirilanjuzi, said the Tax Administration Bill introduces critical reforms, particularly in modernising how tax-related processes are handled.

“It is high time we amended several pieces of legislation that are still based on physical service of documents. This is the digital era, and we need to move with the times,” he said.

He added that the bill will enhance efforts to curb transfer pricing—an illicit practice that deprives the country of much-needed foreign exchange.

“Transfer pricing involves manipulating prices to reduce tax liability, affecting profitability and the tax revenue the country expects to receive. We commend the government for bringing in this bill, as it will help deal with these malpractices,” said Dimba.

Dimba further urged officers from the to uphold integrity and prioritise national interests when handling tax-related cases.

He warned that corruption within the system undermines efforts to boost domestic revenue, especially at a time when Malawi is grappling with foreign exchange shortages.

The former Labour Minister also revealed that about $500 million is lost through illicit financial outflows, stressing the need for stronger enforcement.

“$500 million is a huge amount of money, enough to purchase fuel for the country throughout the year,” he said.

Minister of Finance, Economic Planning and Decentralisation presented the bills in the August House, which were subsequently passed into law following presidential assent.

The approved amendment bills include the Taxation Bill, VAT Bill, Customs and Excise Bill, Tax Administration Bill, and the Supplementary Appropriation Bill.