PAC nods to digital tax stamps
The Public Accounts Committee of Parliament has backed the much awaited digital tax stamp which Malawi Revenue Authority (MRA) implementing that seeks to tackle smuggling of goods.
The seal of approval was issued through the Committee’s chairperson Mark Botomani after his team inspected MRA Warehouse and uncharted routes that smugglers pass through.
He quipped that the inspection opened the Committee’s eyes and offered it hands-on experience on how people illegally import goods.
“After our inspecting today we have noticed that smuggling is a huge problem and the only solution to prevent it is by bringing different mechanisms like tax stamps. No country can run without taxes and MRA needs our support.
“Likely, the stamping issue has the potential to reduce smuggling and that’s the only solution since the government is losing a lot of money through smuggling of goods. That’s evading tax. MRA should continue sensitizing the public on the matter,” said Botomani.
In his take, MRA’s commissioner general John Bizwick said the goal behind digital tax stamps is to protect and safeguard local industries and consumers from unfair competition posed by illicit, smuggled, and counterfeit excisable products.
He said the idea also seeks to ensure that consumers are not exposed to unbranded and potentially hazardous imports, which could be detrimental to health.
“The local industry will be saved from unfair competition of smuggled products because only legitimate products will have the stamp, and only legitimate products will find their way onto the market.
“Because of smuggling, the market share of products that have been produced in Malawi has been impacted negatively. By bringing in tax stamps, local industry will be saved from the competition of smuggled products,” he stated.
The House’s Committee on industry, trade, and tourism led by Paul Nkhoma also approved the stamps after his team also inspected MRA operations.
Tax stamps are stamped on products to show that the manufacturers have met tax obligations but also to show that the products are fit for human consumption.
On Wednesday, MRA alongside a pressure group called Malawi First, People First and concerned business operators in the country agreed to resolve the planned demonstrations against tax stamps
In May this year, MRA launched the much-awaited Extended Excise Tax Stamps Regime (digital stamping) to bolster the tracking and tracing of excise tax payments.
The development followed the amendment of the Customs and Excise Act (2021).
The Excise Tax Stamps Regime was gazetted in January 2024 and has now been fully implemented as of May 1, 2024.
An enhanced excise tax stamp is a highly secure sticker or label affixed or printed directly using special ink on an excisable product.
Currently, Governments in Democratic Republic of Congo, Kenya, Morocco, Sierra Leone, Gambia, Tanzania, Togo, and Uganda are implementing digital tax stamps.
