Malawi Revenue Authority (MRA) has commended manufacturers and importers for embracing the digital excise tax stamps introduced to boost revenue collection and curb consumption of hazardous goods.
MRA deputy commissioner for domestic taxes Kondwani Sauti Phiri said this in Lilongwe on Friday after the tax collector concluded an intensive nationwide training of officers to boost their capacity to combat tax evasion, smuggling and illicit trading, thereby promoting tax compliance.
He said: “We have engaged extensively with stakeholders, including manufacturers, wholesalers and cross-border traders to ensure smooth adoption of the digital excise tax stamps system.”
Sauti Phiri said already, companies have ordered 170 million digital tax stamps, which will not only enhance tax compliance, but also protect local industries from unfair competition caused by smuggling, counterfeit goods and illicit trade.
of the shops in Mchinji | Eric Mtemang’ombe
The training, conducted from November 14 to December 6, was facilitated by SICPA, a Swiss company which supplies digital and paper tax stamps and digital excise tax stamp management system, and was contracted by MRA in September 2023.
SICPA drilled 60 MRA officers nationwide in theoretical and practical sessions, including field visits to Mchinji One-Stop-Border Post to evaluate adherence to excise tax stamp regulations among customs border officials and importers.
In his Mid-Year Budget Review Statement delivered in Parliament on December 4, Minister of Finance and Economic Affairs Simplex Chithyola Banda described digital tax stamps as a “critical measure” to enhance revenue collection.
“This system strengthens Malawi’s revenue collection framework by ensuring products on the market are legitimate, tax-compliant, and businesses contribute their fair share to government revenue,” he said.
In 2009, Tanzania rolled out the digital tax stamps, heralding an end to physical stamps, whose use has been linked to incidents of tax evasion and counterfeiting.
The International Monetary Fund praised digital tax stamps for their role in transforming tax collection in Tanzania.
While digital tax stamps have been applied to cigarettes for over a decade, their scope now includes a broader range of excisable products such as alcoholic beverages, including beer, wines, spirits, whiskies and opaque beer.
It also includes non-alcoholic beverages such as bottled water, carbonated soft drinks, energy drinks, fermented tea and maheu as well as personal care products such as body lotion and glycerine.
The training provided MRA officers with critical skills to monitor and enforce compliance of digital tax stamps using cutting-edge tools, including the the Kalondola365 mobile App.
The technology allows real-time tracking and compliance monitoring of tax stamps on excisable goods.
