Analyst Bamusi credits e-invoicing reform for MRA’s revenue gains

Malawi’s Revenue Authority (MRA) has been commended by a governance analyst after exceeding its first-quarter tax collection target, in a result seen as an early sign that a broader digital overhaul of the country’s tax system is beginning to pay off.

The authority collected K1.398tn in the three months to June, against a target of K1.378tn — an overcollection of roughly K20bn, according to figures cited by governance expert Mabvuto Bamusi in a commentary published in the Weekend Nation newspaper.

Bamusi said the performance suggested “Malawi is on track to strengthen domestic resource mobilisation,” attributing the gains in part to the full rollout of an electronic invoicing system from May 1, a reform introduced under MRA commissioner-general Felix Tambulasi.

The new system replaces the authority’s earlier electronic fiscal devices, which officials say had grown increasingly inefficient at capturing value added tax and had become susceptible to manipulation by tax evaders and other bad actors.

In his column, Bamusi described the rollout as a “landmark move” in the digitisation of Malawi’s tax administration, arguing the platform would make compliance “simpler, more transparent and cost-effective” for businesses of all sizes.

He rejected suggestions that the new system would give MRA officials access to sensitive commercial information, characterising it instead as a more efficient mechanism for capturing VAT already owed by registered businesses.

The reform, he added, signalled that “the honeymoon is over” for businesses that have historically under-reported VAT liabilities, noting that all VAT-registered entities are legally obliged to comply with existing tax law.

Bamusi linked the stronger revenue performance to Malawi’s wider fiscal ambitions, arguing that consistent overcollection would help finance the government’s National Economic Recovery Plan and support what he termed “people-centred economic transformation.”

He also pointed to knock-on benefits for the Constituency Development Fund, which he said could be scaled up to K5bn per constituency if revenue performance continues to improve — a development he suggested would strengthen prospects for more inclusive economic growth.

The MRA has not independently detailed how much of the overcollection is directly attributable to the new invoicing system, though the timing of the rollout has been widely cited by officials and commentators as a contributing factor.