Malawi Revenue Authority has collectd over K 136 million in penalties from business operators defying the order to use the Electronic Fiscal Device (EFD) to smoothen the collection of Value Added Tax since end August.
FaceofMalawi speaking to MRA EFDs Operations Manage Kondwani Sauti Phiri, disclosed that the amount has increased as most businesses are not using the devices.
âThere are penalties as prescribed in the law, and we have inspectors who are going in major towns, cities and trading centers finding out who is not using the new system and if one is found they are penalized on the spotâ Phiri said.
In the first phase, MRA had estimated to reach out to 7 thousand value added operators who issue cash sale receipts manually, but however, there are some operators who have not purchased the machines even after the set deadline.
The amount collected from defaulters has since accumulated to K 136 million as of end September since the authority begun inspecting business operators using the devices end August.
Meanwhile, MRA has since rolled out the EFD second phase, targeting VAT operators who use electronic machines when issuing cash sales like departmental shops.
âWe have given the operators a grace period of three months from 1st October toÂ 31st of December so that whoever buys the device within these three months would be allowed to claim 100 percent cost of procuring from the Authority,â said Phiri.
Some of the operators still lament that the devices are very slow and not user friendly.
MRA introduced the electronic machines to maximize revenue collection from VAT operators who it says were paying less than what they are supposed to.