MRA Head of Corporate Affairs, Wilma Chalulu
* Installed at 14 sites involving 22 manufacturing machines across the country, including Castel, Chibuku, Rab Processors, and Coca-Cola, among others
* This will improve monitoring of excisable products and strengthen revenue collection with some manufacturers recording revenue growth of up to 100%, while others of about 200%
By Tarcizio Mondwe, Malawi News Agency (MANA)
Malawi Revenue Authority (MRA) emphasises that its Kalondola Excise Tax Stamp System is set to enhance tax compliance, boost domestic revenue mobilisation and help curb illicit trade expands.
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MRA Head of Corporate Affairs, Wilma Chalulu, disclosed this in Blantyre on Thursday during a media engagement, saying in partnership with SICPA — a highly specialised, private Swiss technology company that provides security inks for currencies and advanced product traceability systems — the tax stamp system has been installed at 14 sites involving 22 manufacturing machines across the country.
This will improve monitoring of excisable products and strengthen revenue collection and Chalulu indicated that the installed machines are currently operating at various companies, including Castel, Chibuku, Rab Processors, and Coca-Cola, among others.
Chalulu explained that before the installation of the machines, MRA had limited capacity to monitor production volumes in real time, making it difficult to establish the exact number of stock-keeping units produced by manufacturers.
“Previously, MRA had to visit companies and rely on estimates to determine the volumes produced,” she said. “With these machines installed on production lines, we are now able to see in real time how many products have gone through the system.
Chalulu added that the system has contributed to increased tax revenue since its introduction, with some manufacturers recording revenue growth of up to 100%, while others have registered increase of about 200%.
MRA taxpayer education specialist, Edgar Mpelepele, stated that the system has strengthened market control, reduced illicit trade, and improved revenue collection by ensuring that excisable products are properly accounted for.
“The system protects legitimate businesses from counterfeit and smuggled products, promotes voluntary tax compliance, and enhances monitoring of excisable goods,” he said.
Mpelepele explained that the stamps are applied to products, including beverages, alcoholic drinks, cigarettes, lotions, and other specified goods, to confirm payment of excise tax.
The system uses secure paper and direct digital packaging stamps, with compliance monitored through field inspections, border surveillance, the Horizon application, and public verification via the Kalondola 365 mobile app.
Offenders of the system face stiff penalties, including fines of up to 10 times the excise duty involved.—Editing by Duncan Mlanjira, Maravi Express
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