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Parliament passes the estate duty amendment bill

Written by  Isaak Jali

Parliament has passed the Estate Duty Amendment Bill which seeks to amend the Estate Duty Act in order to revise the rates of duty payable on deceased property.

17
November

After the Minister of Finance Goodall Gondwe presented the bill, most Members in the House expressed some reservations on the wisdom and the amount of the estate duty to be taxed.

 

But justifying the estate duty, Finance Minister Goodall Gondwe said currently the duty is only levied on property whose gross value is in excess of K30,000.

 

He said in light of the depreciation of the Malawi Kwacha over the years, almost every person dying in Malawi today, has property at the value more than the stated amount of K30,000.

"As a result, people who ordinarily would not have had to pay estate duty are suffering paying the duty which is exorbitant and oppressive". Observed Gondwe.

 

But contributing to the debate, most Members were of the view that imposing duty on the deceased estates, amounts to oppression to the deceased's family.

 

However reacting to the concerns, Finance Minister Goodall Gondwe said revising the levied amount of property from K30,000 to K5 million was the only fair way to address the matter.

 

Following the amendments, the House agreed to revise the amount to be taxed from the proposed K5 million to K10 million and the bill passed.

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