Economic experts have described the increase of the tax bracket by the Malawi Revenue Authority at a time Malawians are struggling financially as a wrong move.
The sentiments come at a time the Malawi revenue authority has increased the tax bracket, which has made some Malawians get less pay.
Speaking to MIJ Online, one of the economic experts in the country Hopkins Kawaye has said increasing the tax bracket at a time when most Malawians are struggling financially and experiencing a sharp rise in prices of commodities was a wrong move.
He has since said government should have waited until prices of commodities stabilize before increasing this tax bracket.
Under the new system, PAYE is 0 percent for monthly salaries from 0 to K100, 000 but is 25 percent for salaries between K100, 000 and K330,000.
Salaries ranging from K330,000 to K3 million are being charged 30 percent while those from K3 million to K6 million are being subjected to 35 percent PAYE. Forty percent PAYE is being charged on salaries above K6 million.
In parliament, Minister of Finance Sosten Gwengwe insisted that the new measure will ensure that Government continues to raise realistic revenues.