MRA DEFENDS ELECTRONIC INVOICING SYSTEM ROLLOUT AMID BUSINESS RESISTANCE
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The Malawi Revenue Authority (MRA) has reaffirmed its commitment to the rollout of the Electronic Invoicing System (EIS), describing it as a critical step toward modernising tax administration and improving service delivery.
Speaking during media briefing at Msonkho House in Blantyre, MRA Commissioner General Felix Kingstone Tambulasi announced that the system has now been fully implemented, replacing the Electronic Fiscal Devices (EFDs) that were introduced in 2014. He said while EFDs helped move businesses away from manual receipts, they have become outdated, costly and inefficient in today’s fast-evolving business environment.
Tambulasi noted that businesses have for years raised concerns over the high cost of acquiring and maintaining EFD machines, which he said cost around K2.5 million each. He added that the old system also had technical shortcomings, limiting MRA’s ability to effectively monitor and track Value Added Tax (VAT) transactions.
He emphasized that the EIS is not a new tax but a modern platform designed to improve how invoices are issued and tax records are managed.
According to Tambulasi, the response to the new system has been largely positive, with over 7,500 of the 9,000 VAT-registered businesses already onboarded and actively using the platform. He described this as a clear indication that the system is both practical and beneficial.
The MRA boss highlighted several advantages of the new system, including its web-based nature, reduced operational costs and elimination of expensive hardware. He said the platform also enables real time transaction monitoring and better stock management for businesses.
Despite the progress, Tambulasi expressed concern over reports that some traders have shut down their businesses in protest against the system. He further warned against alleged acts of intimidation targeting traders who have chosen to continue operating.
He described such actions as counterproductive, stating that business closures ultimately harm the traders themselves and negatively affect the country’s economic growth.
Tambulasi clarified that VAT remains a consumption tax charged at 17.5 percent and is paid by consumers, not business owners. He said businesses only act as agents responsible for collecting and remitting the tax to government.
He also pointed out that MRA had made several concessions to ease the transition, including extending the implementation deadline three times from November 2025 to February 2026 and finally to May 1, 2026. In addition, the VAT registration threshold was increased from K25 million to K50 million to reduce the compliance burden on smaller businesses.
To support the transition, MRA has been conducting nationwide training sessions and offering continuous technical assistance through its call centre and offices across the country.
Tambulasi has since appealed to all businesses to embrace the new system and resume normal operations, stressing that EIS is designed to benefit both businesses and the broader economy.
He acknowledged that initial challenges are expected with any new system but maintained that embracing technological change is essential for efficiency, competitiveness and compliance.
He added that MRA remains committed to working with all stakeholders to ensure the successful implementation of the Electronic Invoicing System.
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