Malawi has more males working than females, with males dominating 86 percent of the jobs, according to figures contained in the 2017 Malawi Government Annual Economic Report.
Out of a total workforce of 5.5 million, only 11 percent secure jobs in the formal sector while 89 percent are occupying jobs in the informal sector.
Informal employees are workers whose work is not regulated by labour legislations and are without provisions for social security benefits such as compensation services, pension scheme and sick leave. The informal sector is mostly not taxed.
In an interview, Centre for Social Concern (CfSC) executive director Joseph Kuppens said taxing the informal sector could help to reduce the value added tax (VAT) burden on companies.
He said neighbouring countries such as Zambia and Zimbabwe have a more friendly tax regime with a much higher tax free band and standard VAT rates.
For instance, available statistics indicate that in Zimbabwe, government imposes a standard 15 percent standard VAT while in Zambia, the standard rate is at 16 percent.
Earlier, Malawi Congress of Trade Unions (MCTU) president Luther Mambala said it would be good if medium and small enterprises were spared taxation. n