The Malawi Revenue Authority (MRA) has expressed satisfaction over the
industry’s response on its recently introduced Electronic Fiscal
Device meant to maximize collection of Value Added Tax (VAT).
The Tax Collecting body announced the innovation early this year
–through which the gadget will record and decode the accumulated tax
liability of VAT registered businesses.
Speaking in an interview months after the body reinforced the
compliance, its public relations manager Wilma Chalulu said the
initial assessment shows satisfactory response from the industry.
“We have observed that the players are positively responding to this
initiative, though it is still too early to make a proper assessment.
“The first phase will run up to June 30th, we are yet to assess
officially, however looking at the number of inquiries that we have
received, we are positive the initiative will succeed.” Chalulu said.
Chalulu has since reminded VAT registered businesses to comply to this
requirement saying failing to do that will attract penalties by expiry
of the grace period.
MRA introduced the innovation which will enable its switch detecting
the amount of VAT on the point of sales –there by minimizing chances
of the body being misinformed by crook operators who used to give
false information regarding TAX liability.
