Following public outcry, Finance, Economic and Development Planning Minister Joseph Mwanamvekha told Parliament on Monday that Government has withdrawn the tax, which was proposed in the 2019/20 national budget.
Mwanamvekha said that instead, government would introduce a 20 percent withholding tax on interest earned by Trust Funds and commission to mobile network operations.
Addressing the media on Wednesday, Cama Executive Director John Kapito said the withdraw of the tax had a positive impact on livelihoods of many Malawians who have now adopted usage of the mobile phones as means of financial inclusion.
“Most Malawians are now using mobile phones for a number of transaction which include savings but also for paying bills for various services, the mobile phone networks also provide employment to a large number of Malawians mostly women and whose income is dependent on transactions by mobile phones.
“Cama is therefore thanking the Minister of Finance that it pleased him to withdraw this tax, we are thankful to have such a listening Minister and Government,” said Kapito.
Introduction of the tax had also attracted reaction from Malawi Confederations of Chambers of Commerce and Industry, academicians and mobile money service providers.