The Malawi Revenue Authority (MRA) says digital tax stamps system, also known as Kalondola, has improved excise tax compliance and boosted revenue collection since its rollout in 2024.
MRA acting head of corporate affairs Wilma Chalulu said in an e-mail response on Friday that the introduction of mandatory tax stamps has forced previously informal manufacturers to register, contributing to strong growth in excise tax revenues.
“This shift has led to exponential revenue growth. For example, excise tax payments in the alcoholic beverages sector have increased by 500 to 600 percent, with similar upward trends in non-alcoholic beverages,” she said.
in one of the shops in Lilongwe. | Nation
MRA has also exceeded its domestic excise tax revenue target, collecting about K168.8 billion against K155.16 billion in the 2025/26 fiscal year.
The Kalondola system was introduced in two phases. From May 1 2024, stamps became mandatory for cigarettes, alcoholic drinks including beer, wine, spirits, whisky and opaque beer as well as non‑alcoholic beverages.
The second phase, effective July 1, extended coverage to bottled water, carbonated soft drinks, cereal‑based drinks, energy drinks, fermented sweet tea, lotion and glycerine.
Chalulu said the system differs from the previous self-assessment model, which she said was prone to underreporting and offering limited oversight of production volumes.
She said the current regime uses a track-and-trace system that enables real-time monitoring of production, improves transparency and strengthens accountability among manufacturers.
The system has also made it harder for illicit products to enter the market as smuggled or unlicensed goods cannot easily obtain secure excise stamps, adding that the number of registered excisable goods manufacturers has more than doubled from 51 before implementation to 114 due to increased formalisation in the sector.
MRA data show that 22 production lines are now being monitored through digital systems, including secure coding lines for beverages and the secure activation system for tobacco products.
On enforcement, MRA has since imposed penalties totalling about K1.46 billion as of February 28 2026, following measures such as product embargoes, detentions and seizures.
Said Chalulu: “To sustain this momentum, the authority is deploying 24-hour surveillance, with technicians stationed at production facilities and enforcement officers at strategic checkpoints.
“We are also utilising flexible anti-smuggling teams to conduct rapid, unannounced inspections.”
But MRA noted that some challenges persist in parts of the non-alcoholic beverages sector, particularly among some importers and MRA is addressing these through targeted engagement and enforcement.
The Kalondola system was introduced in 2024 following a 10-year agreement between MRA and Sicpa Malawi, a subsidiary of Switzerland-based Sicpa SA, to modernise excise tax collection and strengthening accountability.
The system uses secure tax stamps that combine material and digital security features, allowing both authorities and consumers to verify product authenticity while helping detect illicit trade such as counterfeiting and smuggling.
MRA has also integrated the system with the Automated System for Customs Data to streamline import processes.
Castel Malawi corporate affairs director Gloria Zimba is quoted as having urged consumers to avoid products without digital stamps, emphasising that compliance ensures the government captures the revenue needed to invest in essential services and infrastructure.
“The stamps allow the government to realise the correct amount of revenue,” she said.
Digital excise tax stamps are not unique to Malawi. Several countries, including Tanzania, Democratic Republic of Congo, Kenya, Morocco, Sierra Leone, The Gambia, Togo and Uganda, have adopted similar systems.
The International Monetary Fund has previously highlighted track and trace systems as tools for improving tax administration and strengthening revenue collection.
