MRA intensifies crackdown on EFD offences


Malawi Revenue Authority (MRA) has sealed a total of eight establishments in Blantyre and Limbe since Monday over non-issuance of EFD (Electronic Fiscal Device) receipts.

The development follows commencement of an operation by the Authority aimed at ensuring that Value Added Tax (VAT) registered operators, who were issued with penalties for non-issuance of EFD receipts comply. The action follows the lapse of 21-day grace period, which was given to the traders to pay their due penalties.

On Tuesday, MRA sealed two Limbe based VAT registered operators; Wang Trading and Olympic Bakery.

The other businesses that have been closed for similar offences are IT Suppliers & Logistics, Tranic Trading, Hassan International, Indian Spice, The Palace Bar, and VE Trading.

MRA Head of Corporate Affairs, Steven Kapoloma has since reiterated the Authority’s stand that the law will continue to take its course as all businesses that were penalised for non-issuance of EFD receipts and have not paid their due tax are being closed.

“We are now going all the way with similar operations in the four cities where Kuiphula ndi Lisiti Langa took place. Our call to the offenders is that they must swiftly settle their due taxes and penalties before we visit them,” said Kapoloma adding that businesses that do not issue EFD receipts deprive Malawians of VAT.

The ‘Kuiphula ndi Lisiti Langa’ campaign’s main objective was to encourage VAT registered traders to issue EFD receipts all the time. The campaign disbursed a total of K25.9 million in cash rewards with a total 1,094 cases reported and a total of K347.6 million in revenue collected.

MRA has since reminded VAT registered traders that under Section 46 of the VAT Act, failure to issue an EFD receipt attracts a minimum penalty of K500,000.

The Authority has said it will continue raising awareness countrywide among buyers about the importance of demanding EFD receipts while making sure that VAT registered businesses fulfil their obligations to issue EFD receipts for every sale