MRA targets rental income, tenants fear taxes will be passed to them

The Malawi Revenue Authority (MRA) continues to widen its revenue collection base following its decision to bring property owners into the ring.

The move is also seen as a measure to contain tax evasion, especially by wealthy businesses.

In a statement circulating in the social media, MRA is reminding property owners that rental income is taxable by law.

“MRA has noted that some property owners are not yet registered for tan purposes. Please note that failure to declare income is an offence under revenue laws,” reads the statement in part.

The message is simple and clear: if you’re a landlord, it’s time to get compliant – register with MRA, obtain a Taxpayer Identification Number (TIN), and declare your rental income in your annual tax return.

However, some Malawians have expressed worry with its decision to tax landlords, fearing it will lead to higher rents and increased cost of living.

In random interviews with The Nation newspaper, many believe the tax burden will be passed on to tenants, exacerbating the already difficult economic situation.

“If landlords start paying taxes, my rent will shoot up,” said Lazarus Magwaya, a tour guide operator in Lilongwe.

Economists and consumer rights groups share similar concerns, warning that the tax measures will hurt ordinary Malawians struggling with high prices and low incomes. The Centre for Social Concern (CfSC) notes that the average household needs around K945,029 per month to survive, far exceeding many workers’ earnings.

Some, like Saulos Nankwawa, a welder from Zomba, fear the tax will force them to relocate to rural areas due to escalating costs. The MRA’s decision has sparked panic, with many calling for the government to reconsider the tax policy.

But the Authority remains resolute, announcing that its nationwide exercise to identify property owners will kick off on February 2026, and penalties await those who fail to register.

“Failure to declare income is an offence under revenue laws,” MRA warns, urging property owners to your nearest MRA office, call 672 (toll-free), or WhatsApp +265 996 278 690.