Malawi Revenue Authority-MRA has warned that it will bring to book all the business people who are deliberately defaulting the use of Electronic Fiscal Device-EFD machines in the country.
Deputy Commissioner General of MRA Roza Mbilizi sounded the warning on Friday during the launch of EFD campaign in Mzuzu. She said the revenue body is currently employing several strategies such as surveillances and observations in order to enforce compliance by the traders to the newly introduced system.
Mbilizi disclosed that there are some traders in the country that apply their businesses at night or early in the morning in order to run away from issuing EFD receipts.
“I must warn those who are involved in the malpractice that the law will catch up with them,” She said.
However, Mbilizi said there are over 10,000 taxpayers who have acquired and are using the EFD machines. During the campaign launch in Mzuzu, MRA caught Earl Wholesalers and Ajay Krupa Investments who were still defaulting the use of EFD machines. And reacting to the development, MRA said all the shop owners that are caught defaulting the use of EFD machines will be required to pay a fine of K500,000.
“We are going to bite. And we are going to bite hard,” warned Mbilizi.
According to Mbilizi before MRA introduced the new system of paying Value Added Tax (VAT), the authority faced several challenges in collection of VAT due to among other things non issuance of sales receipt by some traders.
Mayor of Mzuzu City Councillor, William Mkandawire urged business people in the country to comply with MRA`S demand of paying VAT.
“Let me tell you, If you default the use of EFD machines, just know that you are the enemy of development of this country,” he said.
Mkandawire said there is no country in the world that can develop without revenue. He urged consumers in the country to always be demanding an EFD receipt when they buy their commodities.
Electronic Fiscal Device is a modern way of paying Valued Added Tax-VAT and is operational in many countries in Africa such as Kenya, Tanzania and Ethiopia. Several business people of Asian origin attend the event that started with a solidarity match from Shoprite up to Taifa market.-Mana