By Benadetta Chiwanda Mia:
The Malawi Revenue Authority (MRA) says it will maintain the full rollout of the Electronic Invoicing System (EIS) despite growing resistance from sections of the business community that has culminated in the closure of some shops in Blantyre, Lilongwe, Mzuzu, Zomba cities and other places.
MRA Commissioner General Felix Tambulasi said at a press briefing yesterday that the system, which became mandatory on May 1, 2026, was a critical reform tool aimed at modernising tax administration and improving efficiency in Value Added Tax (VAT) collection.
The stance comes amid a wave of business closures, including in Limbe Township and Blantyre’s Central Business District (CBD), where traders have protested against the new system.
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Tambulasi said the EIS was replacing Electronic Fiscal Devices (EFDs), which were introduced in 2014 but have since become “outdated, costly and inefficient”.
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He noted that EFD machines cost about K2.5 million to acquire, with additional high maintenance costs, making compliance expensive for businesses.
In contrast, he said the EIS was a web-based platform that eliminates the need for costly hardware while offering real-time transaction monitoring and improved stock management.
Tambulasi dismissed claims that the system introduces a new tax, stressing that it was merely a technological upgrade.
“EIS is not a new tax. It is simply a new, modern and efficient system for issuing invoices and managing tax records,” he said.
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According to the MRA, more than 7,500 out of 9,000 VAT-registered businesses have already transitioned to the system, an indication, Tambulasi said, that the platform was functional and beneficial.
However, resistance from some traders has escalated into shop closures and alleged intimidation of businesses that have complied, developments Tambulasi described as “counterproductive” and harmful to the economy.
“VAT is a consumption tax charged at 17.5 percent. It is not paid by the shop owners. The shop owners merely collect the VAT on behalf of MRA and one would wonder why the shop owners are resisting the EIS,” he said.
Additionally, Tambulasi said the MRA had been conducting nationwide training and expressed commitment for continued technical support to assist taxpayers during the transition period.
The government previously attempted to ease the transition by extending EIS implementation deadlines three times, from November 2025 to February 2026 and, finally, to May 1, 2026.
The authorities also raised the VAT registration threshold from K25 million to K50 million to limit the requirement to larger businesses.
When contacted for reaction, Small Scale Business Importers and Exporters Association in Malawi Chairperson Robert Nachamba said the concerned groupings would meet “very soon” to map the way forward.
“We, as concerned stakeholders, are yet to meet and, so, I cannot comment much [on that] right now. But we will meet very soon to discuss [the issue and] the way forward,” Nachamba said.
