By Draxon Maloya
Mzuzu, Malawi — The Northern Region Business Association has intensified calls for the Malawi Revenue Authority (MRA) to suspend its newly introduced Electronic Invoicing System (EIS), warning that unresolved challenges are crippling small-scale traders and threatening livelihoods.
The tax body rolled out the EIS on 1 May 2026, replacing the Electronic Fiscal Devices (EFDs) arguing that the system will modernize tax collection and reduce compliance costs, but traders insist they need more time, training, and economic stability before full compliance.
At a press briefing in Mzuzu on Monday, association chairperson Chembe Kasambala stressed that business operators are not opposed to modernization but questioned the timing of the rollout.
“We shall continue closing shops for fear of facing penalties from MRA, as many of us have not yet registered our goods under the new system,” Kasambala cautioned.
He announced that if concerns are not addressed, the business community will hold vigils at the MRA regional office in Mzuzu on Wednesday, 6 May 2026.
The traders’ vice chairperson Lenard Njikho accused MRA of failing to consult the business community before implementing the system, despite earlier assurances of a holistic review.
“Businesses are already struggling considering the prevailing economic challenges, with many depending on the parallel market to source foreign exchange since banks lack adequate forex,” Njikho explained.
Njikho also dismissed claims that traders are seeking to evade tax, saying: “Those affected are the traders themselves, not outsiders.”
Since last Friday, many shops in major cities across the country have remained closed, a move traders say reflects their fear of penalties and lack of preparedness.
Despite mounting pressure, MRA has maintained its stance. During a training workshop in Lilongwe last week, Henry Nthonyiwa, a Revenue Officer, urged businesses to migrate to the new system before the deadline.
“We have been extending the rollout of the new system in order to allow traders to migrate, and it is our hope that everyone will get onboarded onto the EIS by 1st May 2026,” he said, adding that the system has been simplified to align with taxpayer needs and reduce compliance costs.
However, Malawian traders are not alone in their concerns. Several countries have temporarily suspended or delayed electronic invoicing systems due to similar challenges.
In Sri Lanka, exporters warned that abolishing the suspended VAT system without a fully functional e-invoicing platform would worsen refund delays. In Bolivia, deadlines for mandatory e-invoicing were extended to September 2026 to give businesses more time to comply.
In the Central African nation of Burundi, compliance has been slowed by poor digital infrastructure among small businesses, while in Nigeria deadlines were staggered between 2026 and 2027 to accommodate medium and emerging taxpayers.
Even in Europe, countries such as Belgium delayed adoption of the new taxation methodology, suspending penalties until March 2026 to allow businesses to adapt.
The Northern Region Business Association’s demand mirrors these global precedents—arguing that without adequate training and forex stability, EIS risks worsening business closures rather than improving compliance.
With shops shuttered and tensions rising, all eyes are now on MRA’s response ahead of Wednesday’s planned demonstrations. The standoff highlights a broader dilemma: how to balance modernization of tax systems with the realities of economic hardship and business preparedness.
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