LILONGWE-(MaraviPost)-The Centre for Democracy and Economic Development Initiatives (CDEDI) has intensified pressure on business operators protesting against the implementation of the Electronic Invoicing System (EIS), warning that those refusing to reopen their shops by Monday should prepare to “pack up and go.”
In a strongly worded statement released on Friday, and signed by CDEDI Executive Director Sylvester Namiwa accused some business people, particularly individuals of Asian origin of allegedly financing and mobilising traders to keep shops closed in protest against the Malawi Revenue Authority’s electronic tax system.
Namiwa has since called on government to take tough action against traders resisting the system, arguing that the continued closure of shops risks paralysing Malawi’s already struggling economy.
CDEDI described the EIS as a progressive and long overdue reform aimed at improving tax compliance, transparency and accountability in business transactions.
According to the organisation, resistance to the system is largely being driven by individuals who allegedly benefited from under-declaring taxes and exploiting loopholes in the old invoicing arrangements.
The organisation further claimed that the protest has nothing to do with the introduction of a new tax but rather fear among some traders that the digital system will expose tax evasion practices.
CDEDI stressed that the EIS is simply an internet-based invoicing platform designed to ease compliance, reduce paperwork and minimise human errors through real-time reporting.
CDEDI has urged the Ministry of Homeland Security to review and revoke work permits and business permits for traders who will continue defying the law after Monday, May 11. The grouping also wants local councils and the Ministry of Trade to revoke business licences for companies refusing to comply with the EIS requirements.
The remarks come at a time when government, is pushing for full adoption of the digital invoicing system as part of efforts to improve domestic revenue collection and seal tax leakages.
For weeks, some traders across major trading centres have been resisting the EIS rollout, arguing that the system is expensive, complicated and difficult to implement, especially for small businesses.
The standoff has triggered concerns among consumers over rising uncertainty in the retail sector.
However, CDEDI insists that businesses operating legally have nothing to fear from the system.
The organisation argued that compliant traders should instead welcome reforms that promote fair competition and equal tax contribution.
In Malawi, authorities believe the EIS could help increase transparency in VAT collection and reduce losses caused by underreporting.
Meanwhile, CDEDI has threatened to organise nationwide peaceful demonstrations on May 13 should traders continue resisting the EIS implementation.
The grouping says Malawians who faithfully pay Value Added Tax deserve protection from what it described as “economic sabotage” by non-compliant business operators.
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