Malawi Revenue Authority (MRA) has reported a sharp increase in domestic revenue collection following the rollout of a new digital invoicing platform designed to track transactions in real time and reduce revenue leakages.
The MRA says the Electronic Invoicing System (EIS) has significantly improved its ability to monitor business transactions, with officials reporting the system now generates more than $1.2 million per day in tax revenue.
According to the authority, total collections in May alone exceeded about $28 million, marking one of the strongest monthly performances since the system’s introduction.
The EIS, a software-based platform integrated into the tax system, replaced and expanded on the older Electronic Fiscal Devices.
Unlike the previous system, the EIS captures transaction data in real time, manages stock records, and simultaneously records both Value Added Tax (VAT) and income tax obligations, giving the MRA broader visibility over business operations.
Out of approximately 9,000 registered VAT operators in Malawi, about 7,500 have migrated to the new system, according to MRA data. The transition represents a significant shift in compliance monitoring across the formal business sector.
Speaking to journalists, MRA manager for taxpayer education Wadza Otomani said the system has strengthened enforcement and reduced previously untracked revenue streams.
“What I can say is that, despite some resistance from business owners, as well as blackout and internet problems, there has been a huge improvement in tax collection since the introduction of EIS,” Otomani said.
He added that the authority can now trace revenues that were previously difficult to account for, crediting the system with improving transparency and efficiency in tax administration.
However, the rollout has faced challenges. Some businesses have reported disruptions linked to connectivity issues and operational adjustments required under the new digital system, even as authorities push for full nationwide adoption.
The EIS rollout is part of Malawi’s broader push to modernise tax administration and improve domestic resource mobilisation amid growing fiscal pressures.
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