The Malawi Revenue Authority (MRA) has called on Malawians to demand Electronic Fiscal Device (EFD) receipts whenever they buy goods from shops that have EFDs.
According to MRA chairperson Evelyn Mwapasa, this would enhance Value Added Tax (VAT) compliance and ensure maximum revenue collection for the development of the country.
Mwapasa made the call during the launch of ‘Lisiti Langa’ EFD Campaign in Limbe, Blantyre on Friday, July 15. EFD is an advanced version of an electronic cash register.
It is a device that records all sales transactions and provides evidence of such transactions in a technically easy and undisputed way. Above all, it records all purchases and stock reconciliation.
Mwapasa said EFD machines have had a very big impact on the economy of Malawi. She noted that since the introduction of the initiative, the tax body has collected more revenue than ever because it is becoming difficult for traders to run away from tax compliance.
“The aim of launching ‘Lisiti Langa’ campaign is to sensitize people that by demanding fiscal receipts, VAT will contribute towards the economic development of Malawi.”
“Right now, the tax collecting body has more than 10,000 registered EFD operators and it is doing everything possible to bring more people and companies into tax,” said Mwapasa.
She added that EFDs will ultimately improve VAT collection which will translate into improved revenue for the government to use in various development projects.
Mwapasa then warned all tax evaders that the law would take its course once they are caught.
Commenting on the issue, Consumers Association of Malawi (CAMA) Executive Director John Kapito said since the ‘Lisiti Langa’ campaign started, there has been clear evidence that people knew the advantages of demanding receipts from EFD registered shops.
Kapito said consumers have now started demanding receipts from shops, adding that the campaign has taken the right route.
He said: “CAMA started lobbying people to demand receipts way back and now I am happy that MRA has joined the campaign and I urge them to intensify it.”