Malawi Budget Statement for 2021-22 Delivered

VAT Measures

An increase in the VAT registration threshold from MWK 10 million to MWK 25 million;
VAT zero-rating for fuel ethanol, printed books, and textbooks as part of efforts to promote local productions;
VAT zero-rating for fish feed and VAT exemption for machinery specifically used for producing fish feed to support the development of aquaculture;
The extension of the VAT exemption for portable sprayers for agricultural or horticultural to all such sprayers, including mounted sprayers;
The removal of import VAT on:
- raw materials for use in the manufacturing of medicaments, pharmaceuticals, and medical apparatus; and
- raw materials for use in printing and publishing books;
Clarifications regarding which transactions are banking transactions exempt from VAT, so that VAT is properly charged on non-banking services;
The reduction in the validity of invoices for claiming input VAT by VAT registered taxpayers from 12 months to 6 months in order to address abuse.