The Malawi Revenue Authority (MRA) has sealed a drinking joint, The Palace Night Club run at Medical Aid Society of Malawi complex in Blantyre for failing to settle over K3.1 million in taxes.
The Night Club was not issuing Electronic Fiscal Device (EFD) receipts as required by tax laws and was also fined K500,000.
The Night Club was ordered to settle the taxes within 21 days, but did not comply, forcing the tax collecting body to seal it.
MRA Head of Corporate Affairs, Steven Kapoloma said the action, targeting all businesses that were penalized for non-issuance of EFD receipts, started on Monday as their mandatory period of 21 days to pay penalties has elapsed.
“The operations are currently underway, and we have started with The Palace in Blantyre who owe Malawians K3.1 million in taxes for non-issuance of EFD receipts.
“Businesses that do not issue EFD receipts deprive Malawians of Value Added Tax (Vat),” said Kapoloma.
He, therefore, said MRA will continue to raise awareness among buyers on the importance of demanding EFD receipts while concurrently reminding Vat registered businesses of their obligations to issue EFD receipts for every sale.
“We have to enforce the laws following penalties that were charged under the ‘Kuiphula ndi Lisiti Langa’ campaign, whose main objective was to encourage Vat registered traders to issue EFD receipts all the time,” said Kapoloma.
MRA is an agency of Malawi government responsible for assessment, collection, and accounting for tax revenues.