By Chisomo Phiri
In a bid to enhance revenue collection and curb the consumption of hazardous goods, the Malawi Revenue Authority (MRA) has introduced excise tax stamps on various products.
Dubbed ‘Kalondola’, the tax stamps will be implemented in two phases, with the first phase covering alcoholic and non-alcoholic beverages, cigarettes, and other products, while the second phase will encompass bottled water, carbonated soft drinks, and other excisable products effective July 1, 2024.
Speaking to journalists on Friday, Kalondola project manager Steve Kuntembwe said the initiative aims to increase revenue collection and discourage the consumption of illicit products that are harmful to health.
He said the tax stamps will also help curb smuggling, as the domestic market will be subject to tax-stamped products.
On his part, Institute of Chartered Accountants in Malawi (ICAM) Chief Executive Officer (CEO) Noel Zigowa welcomed the initiative, noting that it not only generates revenue but also protects consumers from harmful products.
“The introduction of excise tax stamps is a significant step towards enhancing revenue collection and promoting public health in Malawi,” he said.
MRA Commissioner General John Biziwick earlier announced that the authority has extended the affixation of excise tax stamps from cigarettes to various excisable products starting May 1, 2024, as part of the implementation of the Customs and Excise (Excise Tax Stamps) Regulations.
He said to ensure a smooth transition, MRA has granted a three-month period for importers and manufacturers to clear existing stock of unstamped products through clearance sales or disposal.
MRA is responsible for collecting taxes in Malawi.
Its duties include providing tax assistance to taxpayers and pursuing and resolving instances of erroneous or fraudulent tax filings.
