MRA CONDUCTS TAX STAMP SPOT CHECKS

The Malawi Revenue Authority (MRA) has been conducting spot checks in retail shops, wholesalers, liquor stores and other outlets in some parts of Malawi to assess the level of compliance with Kalondola, the country’s tax stamp regime.

The inspections have revealed that while compliance with tax stamps is steadily increasing, some importers and manufacturers are failing to affix stamps on excisable products. Others have affixed stamps but have not activated them as required.

Furthermore, the spot checks indicate that some businesses are still holding old stock without tax stamps, despite MRA advising retailers and wholesalers to provide inventories of excisable products purchased before the two implementation phases of Kalondola.

The first phase ran from 1^st May to 31^st July, 2024 and targeted cigarettes and alcoholic beverages. The second phase, which ran from 1^st July to 30^th September 2024, expanded to include carbonated soft drinks, bottled water, energy drinks, drinks made from cereals like Maheu, lotions, and glycerines, among others.

The inspections follow training workshops for MRA officers on using the Kalondola web system and scanning devices to verify the authenticity of tax stamps.

Kalondola Project Manager Steven Kuntembwe said MRA has been carrying out these spot checks as part of preparations to enforce tax stamp laws and regulations, which include penalties for non-compliance.

‘’Violations include failure to affix or activate tax stamps, as well as trading in unstamped excisable products,’’ he said.

Kuntembwe has therefore urged importers and manufacturers to comply with the regulations by affixing and activating tax stamps. He also called on retailers, wholesalers, and distributors to purchase only excisable products with valid tax stamps to avoid penalties.

“As a tax administration, we try as much as possible to assist taxpayers to comply, and it is not in our interest to charge penalties. Enforcement of tax stamp laws is aimed at levelling the playing field by ensuring all economic operators are complying,” Kuntembwe said.

The Kalondola regime follows amendments to the Customs & Excise Act, which broadened the use of tax stamps beyond cigarettes to include other excisable products such as alcoholic beverages, carbonated soft drinks, bottled water, lotions, and glycerines.

The tax stamp initiative aims to protect consumers from hazardous excisable products, safeguard local industries from unfair competition, enhance compliance among importers and manufacturers, and optimize excise tax collection for national development.

BY WADZA OTOMANI.