Malawi Revenue Authority arrests 8 businesspersons over VAT offences

The Malawi Revenue Authority (MRA) has arrested eight Value Added Tax (VAT) business operators for non-issuance of and failure to retain fiscal receipts.

Kapoloma:  Comply

Kapoloma: Comply

The offences are contrary to Section 46 of the VAT Act (Cap. 42:01) and regulation 28 (2) of the Value Added Tax Electronic Fiscal Devices Regulations, 2015, respectively.

The arrested eight Blantyre and Lilongwe based tax payers are Weionong Ji of Jifa Supermarket. Amini Karji of A H Karji ,  Hassan Usman of Sky Electronics shop, Ms. Cecilia Nkamana of P & B Wholesalers, Ms. Sarfaraz Ismael Patel of Zeenat Beauty, MHamid Kazi of Hadid Enterprises, Emerix Anorue of CEA Enterprises and Steve Prince Storey  of  Prince and PH Trading.

“They were arrested for failing to issue and retain fiscal receipts. Processes are underway for the eight to appear in Court and if convicted, they stand to pay EFD fines ranging from a minimum of MK500,000 for non – usage of the device to MK5,000,000 for fraudulent usage  or be sentenced to imprisonment,” said Steve Kapoloma, MRA Deputy Director of Corporate Affairs.

He also MRA appealed to all consumers to demand fiscal receipts and report any alleged malpractices involving the usage of the Electronic Fiscal Devices (EFDs).

By demanding fiscal receipts or invoice, VAT operators will be forced to use the mandatory Electronic Fiscal Devices (EFDs), which were introduced to curb tax evasion by non issuance of tax invoices.

According to the Authority, some VAT operators are not using the machines as consumers just walk out of shops without demanding receipts for the items bought or services rendered by the taxpayers.

EFDs were implemented to enhance revenue collections by ensuring tax compliance of VAT Registered taxpayers through the use of the Electronic Tax Registers (ETRs).

“It is criminal not to use the Electric Fiscal Devices. We will clamp down on those that are not using the machines and the law will take its course,” he said.

Kapoloma said to ensure compliance, buyers should be demanding a tax invoice or fiscal receipt generated by the EFD as this is the only way a taxable transaction will be captured.

EFDs provide evidence of sales transactions in a “technically easy and undisputed way” as the daily sales transactions are summarized before being transmitted to MRA’s main server.

Meanwhile, the Authority is reminding all taxpayers and the business community that it is their obligation and responsibilty to come to MRA offices to settle tax liabilities by themselves.

Any delay or failure to remit taxes would result in MRA asking for the taxes due plus penalties in accordance with law, according to MRA Acting Commissioner General Roza Mbilizi.

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34 thoughts on “Malawi Revenue Authority arrests 8 businesspersons over VAT offences”

  1. john says:

    Chiyambileni kutolera misonkhoyo why is it that the prices of the commodities still goes up.Life is still hard though w demand fiscal risit so what’s the purpose? Waste of time mungofuna polemelerapo.God will punish you its never 2late

  2. Bristone Mabichi says:

    When I ask to ask: who are these defaulters and fraudsters? You tell me they are Malawians of Asians origin. Why not Malawian of Dedza origin? Of the 8, how many originate from corners of Malawi? None of these fraudsters are appearing on CASHGATE. To reclaim this nation, someone will have to pay a heavy price.
    Just wait, we are carefully watching. Idi Amin Dada of Uganda saw it and acted, sanaipe anakwaniritsa …

  3. basa says:

    palinso mwenye wina trading as AUTOWORLD selling motorvehicle spare parts opposite DEEKAY SUPPLIES naye akuziona ngati ochenjera , sakupeleka VAT RECEIPTS. MRA take note. i have warned you.

  4. chizamsoka munthali says:

    Tidzidimanda receipt??????” Tatiuzeni Kaye 500 chakuti billion anadya ndindani

  5. Thokozani Semu says:

    Okay Mr Vat

  6. Thoccolino says:

    Zipatala zaboma pano tikulipila tax imapita kut? Sukulu za Boma tikulipila, what is a risiti?

  7. Phwado says:

    My tax to be abused by this brainless president?And u cant force me to ask for a [email protected] ya!

  8. Prodigalson says:

    What kind of creater is vat?

  9. Vincent says:

    The payroll tax is enough for me to shit in my pant, so why should i demand a receipt of VAT if price of goods without VAT is cheaper? Mitu yanu ikugwira koma? I hate taxes period!!!!!!

  10. Chathunya says:

    Kkkkkk MRA anthu mwawamanga mwangobetsa dola or mutolele ndalama mukufuunazo adya ndi ma big mungotayapo nthawi ndinthu.

  11. Amwenye useless palibe chomwe akuthandiza kudziko other than kulikokera pansi.

  12. ABzione says:

    Does this tax money end up serving its intended purpose of providing services to the public? The public needs to be assured of that before being encouraged to demand fiscal receipts.

  13. cobra commander says:

    sindingachite zopusa za ma receipt zanuzo. inu ndi a ujeni mumadya nokha mukatolela misonkho yathu afiti inu. mumasuleni munthu, m’chayina ndi amwenye mwawagwirawo. akungochita zimene amawona ma big man akuchita

  14. Bobmarley says:

    The reason we have so many ppl avoiding to issue efd recipts is cause there is lots of imports coming in to the country without the right amount of duties paid at the boarders and is smuggled into the country with the help of customs officers to enrich themselves and then the same mra officers are out targeting business for not issuing efd recipts. Let’s not blame one sector of the business community for the not issuing recipts cause most of the goods that are coming in from Dubai Tanzania moz china is now being imported by some locals and Tanzanians who are well connected at mra and feeding the fat cats there. It has become impossible for one to import goods officially in this country and makes it impossible to compete with this importers as there cost is lower then one that will import officially so many are forced to buy from these traders and resale as we all have to survive. Roza bilizi is using dirty policies against her own staff at mra and the public to fool her bosses and show them she is doing a better job and must be promoted to the CG post. Poor Malawians are paying for the luxuries of the rulers. One customs officer who earns 250 thousand a month has a house a 3 to 5 million car his house is furnished with luxuries and some even have 2 cars. Makes me wonder where the money is coming from and how can they afford such luxuries when eating so little.

  15. Chambang'ondo says:

    Your just trying to use this machine to achieve your ant-Christ plans. Why should I not leave the receipt? When the price is fair without it? You want to take all from school fees to………..

  16. Nyazgambo says:

    As for me I will never demand a receipt! Do you hear that MRA? ZImitu zanu!

  17. seat says:

    In other countries tax evasion is punishable by death. just hang them

  18. MALAWI KKKKKKKKK says:

    Who are amwenye = Indians = India. Recently only last week 30 Indians from India came and helped at the hospitals and left equipment to be used by hospitals who are beggers.

    Who are Chinese = China. Recently only last week APM was there seeking help.

    I hope both the embassies in Lilongwe are watching the torture and pressure imposed on their people by authorities immigration mra and all sectors of authority.

    The policy makers stop behaving like fools. There is everywhere in the world tax evasions by its citizens especially and migrants too and that includes the policy makers as well. Are you trying to make Malawi a law and order country while you ppl are the worst double standards who only not evade tax but siphon the tax payers money without deals involved. At least elsewhere they make deals to siphon which also heavily happens in this country but the proven cash gate is the worst.

    You are busy torturing the business ppl who are paying taxes import taxes who have sells machines who are speculating business in a dangered forex situation in a danger excahnge rate sky rocketting and still trying for their greed but performing businesses where other service industry are surviving and employing who pay paye fbt and Corp tax.

    Even the best looking woman and men carry around shit with them than what is Malawi with full of shit in all sectors trying to act smart while heavy double standards.

    This country is funny. It’s was on 169 out of 183 worst business friendly now I think will jump to 184 out of 183…. kkkkkkkkkk

    No security that even diplomats high secured house is robbed no forex no exchange rate stability no health care no proper education system yet bullies.

  19. Palikanthu says:

    This is good but be sure to seal the loopholes that drain the money once in government hands otherwise you should arres them as well.
    MRA you work hard to collect tax but never really finish the job by safeguarding the resources and investing where it matters.
    Spending my PAYE and VAT on 111 people to go and observe the world go bye in NY is not prudent nor is it legal. So arrest them we are tired of these thefts in the daylight.
    The government sections who are entrusted with efficient use of tax money are failing us as tax payers. It is very painful to see that you take the money of the poor to sponsor selfish travel habits of politicians.

  20. Long Dick says:

    Why should I demand a receipt when charged fairly less, after all the money end up being used in maphwevuphwevu! Please start getting PAYE from MPs and Ministers!

  21. MRA STAFF says:

    The arrests should also be extended to Thodi and Max (ICT) Director who are sexually exploiting fellow MRA employees. Why are you not dismissing Max and Thodi yet similar offence which was committed by Martin Jewado attracted his dismissal? Mboooooliiiiii zanu.

    Ndikulakwa kusakhala ndi maliseche obowola kuti tisamalandire ma favors ngati mmene Barbra akulandilira ma favors kuchokera kwa Maxy. Mpaka kupatsidwa dzina loti Amayi coz ndi chibwenzi cha biggie? Kkkkkk ziliko kuno ku ICT.

    Now a Thodi forcing junior ladies to un dress themselves and you (Thodi) using your uncultured ujeni (Piston) to offer them services from your office is ethically wrong and tantamount to corruption. You are employed to assist them nothing less or more than that. Period. Mukusepha misokho thats why Malawi cant develop.

    LAPANI

  22. Malawi a failed nation says:

    “Mr.Chatonda” YOU HAVE SPOKEN THE TRUTH. Tax Liability is for Foreigners (even born in Malawi will still be classifies as FOREIGNER!!!). Malawians are very selfish and Tax evaders be it THE PRESIDENT & ALL. Looks like big time and obvious that Malawi is becoming very racially motivated country against amwenye Chinese & may be not sure other African countries blacks yet Malawians are the worst tax payers and illiterate on how to manage accounts. MRA what you have done recently is very very gruesome and slowly but surely you will see the results. MRA has killed the milking cow with full of anxiety now in business community where are you going to milk now?? Malawians my foot!!!!!!!

  23. honey comb Chidyauzu says:

    Why should I pay tax for some one to mis use the money. Never .

  24. Becks says:

    Deal with office sex first

  25. Dr Chipopwizo Annachiobac MC says:

    Pls check with double winn investment,oppost OG plastics area 2 bwalolanjobvu LL amenei msonkho akuwuthawa kwambili chinyengo 2much amamusiyilanj kodi

  26. Mtochi says:

    Pliz educate me who is eligible to use these machines. And what is the minimum capital for one to use these machines. Shud locals also have these machines?

  27. George phiri says:

    Kodi amangochimwa ndi a business okha basi? Andale sachimwa? Arrest all offenders including those ruling. MRA phokoso. Monkey works and Baboon eats. Ine ndiye sindingapereke tax dzopusa basi. Catch me if you can. Why should my sweat fund DPP? Munya muona

  28. chatonda says:

    MRA why are failing to arrest the Chinese shop owner at the bridge/flyover down Wullian 2nd from the end of the robbots ? This Chinese is very very rude and he refuses to issue receipts al the time. They sell alot of shoes and many people buy large volumes from the re each day for sell elsewhere but he is very rude and blatant rude to issue the receipts. He withdraws his items from you if you ask for a receipts. I have reported to MRA by phone several times and I even brought some MRA staff two of them but they argued while I was there and they left him not arrested. I told them call the Police then, but nothing/ How do we get the much needed tax for running the country? I am told there are several of such business people especially the Chinese and Nigerians. Deal with them please this is our country.

  29. One Loves says:

    Aaaa why cant you arrest the Presidents for allowing to go to UN with a hundred plus people thereby misusing millions of our tax money….useless MRA.

  30. Zameer says:

    Luckily this was a multi racial arrest otherwise the mwenye hate stories would start.
    Please check RIC hardware in LIMBE she doesn’t issue receipts.
    MRA for this system to work everyone should have a machine from a vendor to a multi national organization including government offices even though they don’t pay vat they should have the machine on zero rated that way you can ascertain their turnover and register them if need be especially container guys and briefcase business people.
    Level the playing field for everyone to comply.

  31. anale says:

    All Asians,this speaks alot about Asian business people in malawi
    .

  32. kabotolokamo says:

    Hey , how about 97 billion not accounted for ? stop telling people these are more evil , arrest those who took that money first !

  33. Mzozodo says:

    That CEA Enterprises Nigerian needs to rot there, he is very stubborn and doesn’t cooperate with authorities when we re doing our work

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