By Benadetta Chiwanda Mia:
Businesses whose products are yet to be sealed with a tax stamp must complete reconciliation to receive free stamps from the Malawi Revenue Authority (MRA) as the second phase of the Kalondola initiative concludes.
A tax stamp is a physical sticker or a digital mark on a product indicating that excise tax has been paid.
The MRA implemented the Kalondolondo Extended Excise Tax Stamps Regime in two phases to ensure local manufacturers and cross-border traders comply with tax stamp requirements.
The first phase, implemented between May 1 and July 31, targeted cigarettes and alcoholic beverages while the second phase, which ran from July 1 to September 30, focused on bottled water, carbonated drinks, and other products.
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Speaking at the Association of Business Journalists (ABJ) annual general meeting (AGM) in Mangochi, MRA Taxpayer Education Specialist Wadza Otomani emphasised that businesses whose products are not yet sealed with a tax stamp must report to the MRA, conduct a reconciliation of their products, and receive free tax stamps to ensure future compliance.
“Tax stamps help track excise tax by monitoring products as they move through the production line,” Otomani said.
Otomani noted that while there has been significant compliance from local manufacturers and businesses, some importers are still resistant.
“Businesses argue that the introduction of tax stamps will result in price hikes. However, the amount charged on the stamps is too minimal to trigger significant price increases, ranging from K12 to K32 per stamp,” Otomani added.
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In addition to ensuring tax compliance, tax stamps are expected to curb the proliferation of fake and hazardous products in the market and protect legitimate local industries from unfair competition through smuggled goods.
The government amended the Customs and Excise Act in 2021, broadening the tax stamps regime beyond cigarettes
