MRA rolls out new tax collection system, traders shut shops

Business in the country’s cities and major towns yesterday ground to a halt as most shops shut down following launch of electronic invoicing system (EIS) which is touted to enhance value-added tax (VAT) collection efficiency.

Malawi Revenue Authority (MRA) on May 1 2026 rolled out the EIS to replace electronic fiscal devices (EFDs) launched in 2014.

Prior to the launch, MRA faced resistance from traders, mostly small and medium entrepreneurs (SMEs) who argued that the system would compromise their businesses. The SMEs staged protests nationwide which forced MRA to postpone the launch from February 1 to May 1 this year.

The EIS is designed to issue electronic tax invoices, manage stock records and transmit transaction data to MRA in real time to ensure accuracy and compliance.

The Nation checks in the country’s four cities of Blantyre, Lilongwe, Mzuzu and Zomba as well as municipalities, namely Mangochi, Luchenza and Kasungu established that most shops were closed, particularly among businesses yet to migrate from the EFD to the new platform. In some places, the shops have remained closed since Friday last week.

In Limbe, the main trading spot in Blantyre, the usual hustle and bustle was missing with the town looking deserted. Out of 136 shops monitored, only six were open.

During the visit, The Nation learnt that some traders, especially foreign nationals, were reportedly conducting sales through backdoor channels without issuing MRA’s EIS receipts.

The situation was the same during checks at Bwalo la Njobvu in Lilongwe as well as in Mzuzu, Zomba and other municipal centres including Mangochi, where most shops remained closed.

In Mangochi, tensions escalated at the boma after one shop owner partially opened his business, prompting other traders to storm the premises and force its closure.

Speaking in an interview yesterday, Enos Wilson, a shop owner in Limbe, attributed the delay in registering for EIS to unresolved concerns about the system.

“We feel this new system may compromise our privacy as businesses. So we are waiting for MRA to clarify some issues before we register,” he said.

In a separate interview, Orama Kanunga, a businessperson who travelled from Phalombe to Limbe to purchase merchandise, expressed frustration with repeated trips with no success.

“I came here on Friday and found most shops closed. I thought it was because of the public holiday. I returned today and found them still closed. This is a big blow because I have spent on the already scarce fuel, travelling twice to and from Limbe, but in vain,” he said.

Small Scale Business Importers and Exporters Association of Malawi chairperson Robert Nachamba, whose entity organised protests against the system, last evening said the association was in a meeting and requested more time to comment.

But he is on record as having stated that the traders were not resisting 

taxation per se, but objected to requirements to declare stock values. He argued that discrepancies between official and parallel exchange rates could result in inflated profit assessments.

“If I import goods worth $10 000 [about K17.5 million] and sell them for K40 million, MRA may estimate my profit at around K20 million. In reality, it is much lower because I sourced foreign exchange at the parallel market rate of about K4 000 to the dollar,” said Nachamba.

In a statement issued yesterday, MRA announced a two-month support window to facilitate the transition from EFD to EIS.

MRA acknowledged that adoption rates may vary depending on business size and complexity but maintained that the system is essential for strengthening tax administration and compliance.

When contacted yesterday, MRA Commissioner General Felix Tambulasi referred The Nation to acting director of corporate affairs Wilma Chalulu who said a formal response was being prepared. However, by press time at 9pm the response was yet to be availed.

In their petition in January, the SMEs protested the requirement to declare the value of goods in stock for EIS tracking.

EK Tax Consulting senior tax consultant Emmanuel Kaluluma said in an earlier interview that the traders’ fears were unfounded because government was only working to bring them into the tax net correctly, without overcharging or undercharging them.

In the 2026/27 National Budget presented in Parliament in February, Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha raised the VAT registration threshold from K25 million to K50 million to ease compliance for smaller enterprises. VAT is now charged at 17.5 percent, up from 16.5 percent5

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