The Malawi Revenue Authority (MRA) has made it clear it is not backing down on the implementation of Rental Income Tax, moving decisively to identify, register, and tax property owners earning rental income across the country.
In a firm show of resolve, MRA has recruited 100 interns who will be deployed nationwide to physically map and identify rental properties--an aggressive move aimed at sealing what the authority describes as a long-standing tax leak.
MRA Commissioner General Felix Tambulasi said the interns will assist in establishing the true number of rental houses and the scale of income being generated, information that will form the basis for revenue estimation and enforcement.
"This exercise is about knowing who is earning rental income and ensuring they contribute their fair share," Tambulasi said, signalling that the authority will proceed despite growing resistance from some quarters.
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MRA says the programme will be rolled out in a phased manner, starting with pilot projects in selected low-density, high-value residential areas--a clear indication that affluent landlords are the first target.
In Blantyre, the pilot phase will cover Namiwawa, Nyambadwe and Sunnyside, while in Lilongwe it will include Area 10 and Area 47, among other locations.
The move has the backing of Parliament. Aekim Kumwenda, Chairperson of the Parliamentary Committee on Industry, Trade and Tourism, said the rental income tax will expand Malawi's revenue base at a time when the Treasury is under intense pressure.
For years, rental income--particularly in urban and high-income neighbourhoods--has remained largely untracked and undertaxed, even as salaried workers continue to face automatic PAYE deductions. MRA says that imbalance can no longer be sustained.
With interns already recruited and pilot areas identified, the message from the tax authority is unmistakable: the era of untaxed rental income is coming to an end, and MRA is not blinking.