By Draxon Maloya

Mzuzu City: For more than a week, most shops in Mzuzu have remained closed, with traders blaming the malfunctioning Electronic Invoicing System (EIS) devices recently introduced by the Malawi Revenue Authority (MRA). 

The glitches have left some business owners penalized for alleged noncompliance, even after reporting the system’s failures to the tax authority. 

Vice chairperson of the Mzuzu Business Community, Lenard Njikho, criticized poor network services and inadequate expertise among MRA personnel tasked with managing the devices at regional offices.

 “The machines take too long to upload goods purchased, and when reported, officers liaise with Lilongwe yet businesses are suspended,” Njikho said. 

 “In some cases, the goods uploaded in the EIS machines do not tally with consignments registered, owing to the devices’ ineffectiveness.”

Njikho advised MRA to roll out the system in phases to allow proper monitoring and avoid crippling businesses.

In Lilongwe, business normalcy is also yet to return. While some shops reopened, traders complained of poor sales and long queues.

At Area 2’s Bwalo la Njovu market and Area 3 one shop owner of Asian origin, speaking anonymously, revealed that MRA had initially allowed traders to use both the old Electronic Fiscal Devices (EFDs) and the new EIS during transition. 

However, MRA’s Stakeholder Relations Manager, Dorothy Mataya, insisted the EIS is “in full swing” and urged noncompliant traders to seek assistance from the authority.

Despite the backlash, MRA reported collecting over K50 billion in May, attributing the surge to the new system.

Taxpayer Education Manager Wadza Otomani told local media that the authority is now collecting more than K2 billion daily. 

“Despite resistance from some business owners, coupled with power blackouts and internet connectivity challenges, there has been a significant improvement in tax collection since the introduction of the EIS,” Otomani said.

Economic analyst Christopher Mbuka urged government to prudently utilize the additional revenue to address systemic challenges and broader national needs.