Business people from Central Region have expressed dissatisfaction over the cost of operating the Electronic Fiscal Devices (EFDs) that the Malawi Revenue Authority (MRA) is enforcing.
The MRA implemented the use of the EFDs, which electronically record sales transactions, for all Value Added Tax (VAT) operators in March this year, and threatened to give penalties to the traders issuing ‘non fiscal receipts’ after June 30 this year.
Members of the Central Region Importers Association met with some of the MRA officials on Friday in Lilongwe where among others they asked MRA to review the costs of the machines and the penalties.
Speaking in an interview after the meeting, the association’s chairperson Thawel Makoka said most of the business people cannot afford to procure the machines which are over K350 000 each.
“The machine is very expensive. What will happen when it gets spoiled after the guarantee period of one year? Who will buy the next one? Even the receipt is very expensive. How will people sustain the receipt cost at K1 200 a roll when they need 30 rolls in a month?” said Makoka.
The members also hold responsible the MRA for not providing proper information on how the devices operate.
“The MRA did not explain in details on what EFD is and how it works. For example, if a business has more than one entry or several paying points, should the operator buy more machines?” wondered Makoka.
He added: “We are happy that the MRA officials have listened to our grievances and assured us that they will discuss the issues with other officials. This is cooperation. We have given them one week to come back to us.”
According to MRA, if VAT operators who were issuing manual receipts or were using ordinary cash registers procure the EFDs within the prescribed months, they will recover the cost of the EFD from the MRA.
