Businesses in Malawi have secured a postponement of a new electronic tax system after tens of thousands of traders took part in peaceful demonstrations across the country’s four main cities. The Malawi Revenue Authority had been due to introduce an electronic invoicing system this week, but the rollout has now been delayed until April.
Thousands of small traders closed their shops on Monday and marched in Blantyre, Lilongwe, Zomba and Mzuzu, dressed in black and carrying placards criticising the revenue authority for focusing on collection targets while vendors struggle. Petitions signed by tens of thousands of people were handed to tax officials.
The protests are the latest sign of unrest in a country grappling with aid cuts, foreign currency shortages and rising costs. President Peter Mutharika, elected last year on a promise to restore the economy, has increased fuel prices by 41% and electricity by 12%. Previous protests over food and fuel prices in September and November were marred by violence after political groups hijacked them.
Robert Nachamba, a representative of small business owners, said the lack of foreign currency in banks forced traders to buy dollars on the black market at nearly three times the official rate. “Our businesses are under threat because of the economy,” he said after delivering a petition in Blantyre. “The country does not have foreign currency in the banks and now the Malawi Revenue Authority is coming with issues that threaten our businesses even further.”
Finance minister Joseph Mwanamvekha has urged citizens to “remain resilient” while the government implements tough measures to stabilise the economy. But economist Bertha Bangara-Chikadza warned that the policies, while technically rational, risk worsening the situation if increased tax revenue is not used to improve infrastructure and public services.
Malawi is the latest African country to adopt mandatory electronic invoicing and real-time tax reporting, following Kenya, Nigeria, Egypt and Uganda, as part of a continental push to boost revenue collection and reduce fraud.
