Business owners in some parts of the country yesterday intensified their protest against the rollout of Electronic Invoicing System (EIS) by Malawi Revenue Authority (MRA) to issue electronic tax invoices and manage stock records.
The Nation checks in Limbe central business district (CBD) in Blantyre, Mzuzu, Kasungu, Mangochi and Zomba established that many shops were not operating, although some businesses such as supermarkets and bakeries remained open.
In Limbe and Blantyre CBDs, most shops, including those dealing in electronics, hardware and plasticware did not open. There was presence of armed police, especially around Limbe CBD.
Business proceeded as usual at Bwalo la Njobvu market in Lilongwe, the capital city’s small and medium enterprises (SMEs) hub in the morning where more than half of the shops were operational.
However, many shop owners did not return after lunch break after receiving news that their counterparts in other cities were protesting against EIS.
Vincent Baloni, a shop owner at Bwalo la Njobvu, said their decision to open for business did not mean they opposed the demonstrations but reflected the economic pressures they face.
Another shop owner, who opted to remain anonymous, said taxes are legitimate and all businesses must comply with government regulations.
“The tax is structured in categories. Some businesses are trying to avoid paying tax, which is not right. We all need to comply and pay accordingly,” he said.
Speaking at a meeting convened following the closure of shops, Mangochi Business Owners Association chairperson Jafali Katopola said EIS risks affecting their livelihoods.
In an interview in Blantyre yesterday, Small Scale Business Importers and Exporters Association in Malawi chairperson Robert Nachamba said traders are not refusing to pay tax, but oppose the requirement to declare stock values.
He said that traders who source foreign exchange from the parallel market are at risk of being unfairly assessed since MRA values imported goods using the official exchange rate of K1 751.
“If I import goods worth $10 000 [about K17.5 million] and sell for K40 million, MRA will say my profit is about K20 million yet it is lower than that because I ordered the goods using the parallel exchange rate [of about K4 000 to the dollar],” he said.
Nachamba said the traders engaged MRA after raising similar concerns during their protests in January but the authority maintained its stance on implementing the system.
In Mzuzu, Northern Region Business Association chairperson Mzuzu Chiyembekezo Kasambara said the traders plan to intensify their industrial action after the deadline.
He said: “We expect the Malawi Revenue Authority and government to respond to our queries within five days and take appropriate action before May 1 this year.
“Failing to meet these deadlines will consequently make us resume our national wide closure of shops after lapse of the May timeline. The planned business shutdown will be bigger than just one day.”
Meanwhile, Mzuzu-based Young Human Rights Defenders Network has condemned the traders’ demonstration against implementation of EIS with the network’s chairperson Mervin Nxumayo suggesting dialogue.
The EIS is replacing Electronic Fiscal Devices (EFDs) and was initially set for roll out on November 1 2025 before the date was shifted to February 1 2026 and later to May 1 2026 after the traders protested.
Responding to concerns about exchange rate, MRA spokesperson Wilma Chalulu yesterday said that the authority uses the official exchange rate in compliance with Exchange Control Laws and Regulation.
She also said MRA has been “engaging the business community on the implementation of EIS”.
In a notice published in The Nation of April 9, MRA said it is currently offering technical support and free EIS onboarding training sessions to taxpayers at its stations ahead of the rollout.
In the 2026/27 National Budget presented in Parliament in February, the Ministry of Finance, Economic Planning and Decentralisation raised the VAT registration threshold from K25 million to K50 million to ease compliance for smaller enterprises.
Additional reporting by AYAMBA KANDODO, HOLYCE KHOLOWA, EUNEAS ZINYENGO and SANGWANI ngulube, Correspondents
