By Yegama Phiri:
Government wants to introduce a new tax on internet-based services offered by foreign digital platforms in a move aimed at widening the tax base and strengthening domestic revenue collection.
Presenting the 2026/27 budget in Parliament on Friday, Minister of Finance and Economic Planning Joseph Mwanamvekha said the government will introduce Value Added Tax (VAT) on digital services provided by foreign platforms such as Netflix, YouTube, and Facebook.
The minister said he will soon present a bill in Parliament detailing how the new tax measure will work.
He emphasised that the policy is intended to boost government revenue, reduce borrowing, and support economic growth.
“This measure is part of our broader strategy to enhance domestic revenue mobilisation while ensuring fairness in the taxation system,” Mwanamvekha said.
The proposal has sparked reactions among social media users, with some Facebookers expressing frustration and concern that the tax could increase the cost of data and online services.
Among others, Frida Mwendeka said the policy will increase prices of data.
Consumer advocates have noted that while the tax may strengthen government coffers, it could disproportionately affect students, young professionals and small businesses that rely on affordable internet for work, learning and communication.
Clifford Mlambia a student Agriculture Economic student at the Lilongwe University of Agriculture and Natural Resources backs the policy, arguing the effectiveness of the measure will depend on how it is structured and implemented, particularly in ensuring that it does not discourage digital innovation or limit access to essential online services.
