Malawi Revenue Authority spokesperson Wilma Chalulu has assured the public that the Electronic Invoicing System (EIS) for collecting the value-added tax will not increase the burden on traders.
Speaking in an interview on the sidelines of a media training on taxation in Blantyre on Tuesday, she noted that there is a lot of misinformation regarding the EIS which has led to some traders demonstrating against its introduction.
during the training. | Andrew Mtupanyama
Chalulu said the new system is merely an improvement in the tax collection system to replace the Electronic Fiscal Device (EFD) which was introduced in 2014.
“The world is moving on. Technology has moved on and we would like to make taxpayers’ compliance easier. The Electronic Invoicing System is merely a system that is technologically more advanced. The cost of the gadgets is even much lower than the EFDs, in terms of the system it can be accessed online and in real time,” she said.
The rollout of the system has been rescheduled from February 1 to May 1 following concerns by traders that the system is punitive and will cripple their businesses.
In their petition presented to MRA, the traders feared the requirement to declare the value of goods in stock for EIS tracking.
Reads the petition in part: “We are already passing through tough times following recent fuel price rise and devaluations, therefore, bringing this system will finish us and our businesses.”
Speaking when they presented the petition to Msonkho House in Blantyre a fortnight ago, Limbe Local Shop Owners Association secretary general Chisomo Rodger wondered why the new system should include small-scale traders who do not use electronic fiscal devices.
She also said the traders already pay import duty and other taxes and they feel the new system will be an extra burden.
