Convicted trader fined K1m for flouting Malawi tax regulations

The Lilongwe Magistrates Court has convicted Silvia Ng’ombe of Trinity Auto Parts for failing to issue and retain a fiscal receipt after selling goods worth K63,000.

Kapoloma:  We have arrested the two

Kapoloma: Demand fiscal receipt

the Malawi Revenue Authority (MRA) Deputy Director Corporate Affairs, Steven Kapoloma, said Ng’ombe was arrested on February 12, 2015 during a compliance monitoring exercise conducted by the tax collecting body.

“Ng’ombe is a shop attendant at Trinity Auto Parts and on the day of her arrest she failed to issue a fiscal receipt with intent not to use Electronic Fiscal Device (EFD) thereby evading Value Added Tax (VAT). The conduct is contrary to Regulation 28(2) of EFDs under VAT Act,” Kapoloma said.

Ng’ombe was sentenced to pay a fine of K1 million or 2 years imprisonment in default by the court and she has since paid the fine.

Kapoloma has further called on all consumers in the country to demand a fiscal receipt every time they make a purchase from VAT registered businesses.

“The Authority would like to emphasise that it is the duty of businesses to always comply with EFD regulations by using the EFD machines honestly and issue fiscal receipts to their customers,” said Kapoloma.

Failure to comply with EFD regulations attracts penalties and fines detailed below:

Offence Penalties and fines
Failure to use EFDs A user of an EFD or any person required to use EFD, who fails to do so without approval, commits an offence and is liable to pay K500,000 or upon conviction a fine of K1 million or imprisonment for two years.
Fraudulent use of EFDs Any person who, with intent to defraud, uses EFDs to mislead, deceive or manipulate information sent through a system or the Commissioner General, commits an offence and shall, in addition to payment of tax which is payable, be liable to pay twice the amount involved or K500,000, whichever amount is greater, or upon conviction to imprisonment of two years.
Tampering with EFDs and their software Any person who, without authorization, tampers with or causes an EFD to perform improperly, commits an offence and shall be liable to pay K500,000 or upon conviction a fine of K1 million or imprisonment for two years.
Failure to comply with any obligation as a user or supplier Any person who violates any obligation as a user or local supplier under these regulations shall be liable to a penalty imposed by the Commissioner General of K500,000
Failure to demand a fiscal receipt Any person who, after purchasing goods or services, fails to demand and retain a fiscal receipt or fails to report a refusal by a user to issue a fiscal receipt as required by these regulations, shall be liable to pay three times the tax payable.
Failure to keep a fiscal receipt  

A person who, after purchasing goods or services, fails to issue and retain a duplicate fiscal receipt or fiscal invoice or refuses to issue a fiscal receipt or invoice upon demand as required by these regulations, commits an offence and shall be liable to pay K500,000 or upon conviction a fine of K1 million or imprisonment for two years.

General offence Any person who commits an offence under these regulations for which no specific penalty is provided, shall be liable to a minimum of K500,000 or upon conviction a fine of K1 million or imprisonment for two years.


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23 thoughts on “Convicted trader fined K1m for flouting Malawi tax regulations”

  1. Aferazao says:

    Dirty thugs, laundering money the smart way.

  2. munyasa says:

    what with these efds eish ….kow many times do we have to pay tax? Import duty is it not tax …..efds how many know them? This is the reason why goods prices are sky rocketing coz of unforseable tax payments traders pay which consumers dont know……..

  3. Ineyo says:

    I feel the machines are so weak and can easily be manipulated. Fancy one buys katundu worthy k20,000 and the shop owner makes the machine to recognize k650 only for VAT, MRA what is this? Have been observing this when I go to buy things from the amwenye shops in limbe. My question is, how cold MRA a big government institution allow sellers to use a machine which can easily be manipulated? komanso what procedures r there to enhance the officers prove that the figure for VAT comes from a correct figure when 16.5% is applied? MRA work up, these so called Indians are reaping from us!

  4. Biswick ngunga says:

    Boma lidakhazikitsa machine amene aja kut mra staffs alemele ndukunena izi kuchoka pansi pa mtima chifukwa muthu sunganene kut bicoz walephela kupeleka reicpt la ndilama zokwana 63 000 kwacha mukumpatsa penoti ya one million bussines yake it imeneyo mra officials this yo time inuyo mavuto mulibe pot dziko lonse limawopa inuyo ife timangowona sinakha ndife akanda patuwe ife omagwila tchito mwa amwenyemu malipo chenje chakumowa tikawuza kut tikwezeleni amati mumawona azibale amazatenga ndilama muno wina ogwila tchito wina wolandila ndilama alimphe pakutha pamwezi bomanso kukupatsani ndilama zambilimbili pamene ife tikulilabe ndi umphawi wadzowoneni chifukwa choti inu mumadzatenga ndilama kudzadzitsa ma account anu kukhala wokhuta bat i know for sure nothing last for ever one day adzakukathani mulungu mudzawona polekela mwamva athu wopanda mzimu ndi gazi inu pitilizani kupondeleza osauka mmene mungapangile mwamva mra komanso boma alibe ayi iwowo koma inuyo ndi amene mulinawo timadziwa kut olo apolice athu amateteza olemela osati osawuka ayi we know that for sure

  5. atate says:

    Please check at Chez Ntemba, they don’t issue receipts those guys. pay them a visit on firday, Saturday or sunday or any day. surprisingly I see a lot of MRA officers, cant we have a penalty for MRA officers who fail to enforce the law despite observing a clear contravention???

  6. vendor says:

    Kkkk a mra this is theft to charge 1million becaue of ur stupid receipt

  7. alukosyo says:

    misonkho tikupeleka koma services still poor. mutharika angokwerera ndege ndi shopping. basi

  8. Mwakipiki says:

    Please MRA, visit Morden Tiles near Cash Build in Lilongwe. They never issue a VAT receipt despite having the machine on the pay counter. They just issue a receipt from a receipt book and write the transaction in a hard cover.

  9. point blank says:

    Selective justice. What about the buyer who failed to demand a receipt? People don’t want to pay VAT. The traders give them options but they choose the non VAT prices. Sensitise people the importance of Taxes so that compliance can improve.

  10. concerned* says:

    Kwa bvumbwe kuno nde sitimapasidwa zima receitzo…nde vuto ndifeyo kapena ogulitsa?

  11. Mwana says:

    Dont be emotional
    Efd ppl always understand if she cud justify or appeal.
    It was not told what was behind the scene.
    There are still over 50% traders who does not have that machine and most consumers knows.
    Ofcourse panelty is quite enough.
    Traders should not charge for cow while selling maize.

  12. tchadiwiki says:

    This is very mean! 63 pin vs 1 million or 2 yrs IHL?

  13. chejaali says:

    Kkkkk koma dolayo igwila ntchito moyenela sikhalanso mwa phwando a wanthu

  14. PETER says:


  15. The Sublime says:

    He who has never sinned should be first to cast the stone.

  16. ujeni says:

    This is bogus Revenue collection. Obviously it can only be allowed in country so confused like Malawi. Failure to issue reciept of K63,000 only and you charge some a wooping K1m?

  17. Mpoto says:

    MRA is good at collecting taxes more especially in the north. Last year the government collected about MK280 billion but all the districts received about MK23 billion for various types of uses. Where did the MK257 billion go?

    I want to be open to the government that WE THE NORTHERNERS ARE TIRED OF YOU. We need to form our own government and develop our region.

    I hate you all top office bearers especially George Chaponda and Mwanamveka with perfect hatred. Please don’t try to come to the north because you are selfish.

    God bless Nyika and Banyika.

  18. ujeni says:

    I’m not getting this, is she the owner when you say business woman? Then you say again she is a shop attendant. Timve ziti. And she managed to pay K1m? For an offence of K60,000?

  19. ujeni says:

    I’m not getting this, is she the owner when you say business woman? Then you say again she is a shop attendant. Timve ziti. And she managed to pay K1m?

  20. kajedza says:

    So who pays the fine- pls clarify whether it is the op attendant or the owner of the business?

    The fine for failure to demand a fiscal receipt from the supplier should be Mk500,000 as well and not three times as mentioned. It will then encourage the customer to sternly demand the receipt and thereby compelling the supplier to issue the fiscal recipt

  21. Kulibe kantu says:

    If you enforce the law like this, traders will start respecting you. They will fear to flout the law. This means you will collect more money for tax. Also tell MRA officials from accepting bribes. But I am looking forward to the day when you will arrest Indian traders.

  22. Majoti says:

    Come To Karonga And Visit Chinese And Asian Shops. You Will See, They Dont Issue Any Reciept And They Merely Use Simple Calculators. It Is Allegf That MRA Personel Are Ussually Bribed Once They Visit These Shops Hence They Dont Effect Any Punishment. Search!

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