Civil society organisations (CSOs) have backed the Malawi Revenue Authority (MRA)’s rollout of the Electronic Invoicing System (EIS), warning that resistance from some business players is aimed at protecting VAT abuse and tax evasion.
The CSOs, including the Centre for Democracy and Economic Development Initiatives (CDEDI), Mzuzu Youth Caucus, Drug Fight Malawi, the Citizen League, and Mchinji Youth Alive, stated that the new system is a crucial step towards enhancing transparency and accountability in Value Added Tax (VAT) collection.
Speaking at a joint press statement released Friday in Lilongwe, the organizations clarified that the EIS is not a new tax, but an internet-based invoicing system designed to enhance compliance, enable real-time transactions and reduce fraud and human error.
They stressed that the system will help ensure that VAT collected from consumers is properly remitted to government to support essential services such as healthcare, infrastructure and public sector salaries.
However, the CSOs warned that some business operators who have been benefiting from under-declaring VAT are allegedly mobilizing resistance and misleading the public into believing the reform will increase taxes.
“No wonder those that have skinned Malawians through unfair trading practices, under declaration of VAT and are at the centre of exploiting unsuspecting Malawian workers, are mobilising and financing those they rob to protest and block the transition to a more reliable invoicing system,” reads their statement.
“Their unpatriotic and selfish acts are thinly veiled in the guise that Malawians are an overtaxed population.”
According to the statement, such actions are meant to protect profits at the expense of ordinary Malawians, who continue to suffer from underfunded public services due to revenue leakages.
The organizations also raised concern over widespread tax evasion and smuggling, alleging that some individuals within public institutions, political circles and law enforcement agencies are complicit in facilitating these illegal activities.
“Apart from revenue loss, smuggling also means exporting jobs. But it is disheartening to note that some MRA and political elites, including some officers from law enforcement agencies, are at the centre of aiding smuggling and tax-evasion,” added the statement.
They further noted that communities in some border areas are contributing to smuggling, a practice they said not only leads to revenue loss but also exports jobs and weakens the local economy.
The CSOs have since urged Malawians to support the EIS rollout, pay taxes and report businesses that evade tax, emphasising that citizen participation is key to strengthening accountability.
They also called for a review of laws that may shield tax offenders under confidentiality provisions, saying such protections risk enabling large-scale financial misconduct.
Additionally, the organisations have demanded that the MRA provide an update on the K16 billion Mapeto tax evasion case, arguing that Malawians deserve closure on a matter involving significant public resources.
