Finance Minister Simplex Chithyola has hailed the introduction of Electronic Excise Tax Stamps as a transformative move to enhance revenue collection, curb tax evasion and tackle smuggling.
Unveiling the measure in his 2024-2025 Mid-Year Budget Review Statement, Chithyola positioned the initiative as a cornerstone of the government’s broader fiscal reforms.
The stamps target excisable goods like bottled water, alcoholic beverages, cigarettes and soft drinks.
“Electronic tax stamps are a game-changer. They are secure digital markers that verify product authenticity and ensure the payment of necessary excise duties,” Chithyola stated.
“This initiative ensures that only legal and tax-compliant goods circulate in the market, bolstering government revenues.”
The Minister emphasised the multi-pronged benefits of the system, describing it as pivotal in combating tax evasion and smuggling.
“For years, excise goods have been plagued by revenue losses. This measure directly addresses those leakages while discouraging the smuggling of taxable goods. It’s a win for compliance, transparency, and accountability,” he added.
Calling for urgent action, Chithyola stressed, “The Malawi Revenue Authority (MRA) has issued a clear directive: all traders must register immediately.
“Non-compliance will lead to confiscation of goods, underscoring the government’s unwavering commitment to enforcement.”
The Finance Minister further hyped the initiative’s alignment with fiscal reforms aimed at improving revenue collection and economic recovery.
“This measure is not just about plugging leaks. It’s about empowering the government to invest in critical sectors such as health, education and infrastructure.
“Strong collaboration between government, businesses, and enforcement agencies will ensure its success,” Chithyola asserted.
MRA’s head of corporate affairs, Steve Kapoloma, in earlier sentiments, described the system as a vital tool in protecting legitimate businesses and fostering voluntary tax compliance.
“Excise tax stamps are not additional taxes but mechanisms to ensure taxes due have been paid.
“This protects local businesses from unfair competition caused by smuggling and counterfeiting,” Kapoloma explained.
He highlighted the extensive stakeholder engagements carried out by the MRA, including meetings with manufacturers, distributors, importers, and cross-border traders.
“Concerns raised during these engagements have been addressed, paving the way for a seamless rollout,” he said.
