The Malawi Revenue Authority, MRA, has cleared growing public confusion surrounding the Electronic Invoicing System (EIS) and the enforcement of rental income tax, stressing that neither measure introduces a new tax but instead strengthens compliance and improves efficiency in tax administration.
Speaking in Blantyre on Tuesday after a media sensitisation workshop on taxation, MRA Head of Corporate Affairs Wilma Chalulu said the engagement with journalists was aimed at correcting misinformation and easing anxiety among taxpayers, particularly businesses and property owners.
Chalulu acknowledged that both EIS and rental income tax enforcement have attracted skepticism, with some members of the public viewing EIS as a new tax, a form of double taxation, or a way of spying on businesses.
“There is a lot of misinformation out there. Sometimes when people do not have enough information, there is a tendency to panic. But EIS is not a new tax,” she said.
She explained that EIS is an upgrade from the Electronic Fiscal Devices, EFDs, introduced in 2014, noting that advances in technology have made it necessary for MRA to modernise its systems.
“The world has moved on and technology has moved on. EIS is simply a more advanced system that makes compliance easier. The gadgets are cheaper than EFDs, the system is online, and it can be accessed in real time from anywhere,” Chalulu said.
According to her, the system can be interfaced with existing business systems, reducing operational costs while improving transparency and efficiency in VAT administration.
On rental income tax which she emphasized has been in existence for so long but lacked enforcement, Chalulu dismissed fears that enforcement will automatically lead to increased house rentals.
“This tax will not translate into increased rentals. If rentals go up, that is the behavior of the landlord. In fact, increasing rent only increases the tax burden that the landlord remits to MRA,” she said.
She further disclosed that MRA will soon roll out a property mapping exercise as part of strengthening rental income tax enforcement, with activities expected to start before the end of February.
“The mapping will begin in Blantyre, Lilongwe, and Mzuzu, starting with low-density areas. We have already recruited data collectors, and the public will be clearly informed where we are starting and how to identify MRA officers,” she said.
On compliance deadlines, Chalulu clarified that the rollout of the Electronic Invoicing System has been rescheduled, with full enforcement now set for 1 May, 2026. From that date, penalties will apply to non-compliant taxpayers.
