SICPA SA TRAINS MRA STAFF ON REVENUE IMPACT OF TAX STAMPS

Malawi Revenue Authority (MRA) recently conducted a one-day training on assessing the fiscal impact of tax stamps on revenue collection. The training was held on 21^st March 2025 at the Malawi Sun Hotel in Blantyre, drawing participation from key divisions across the institution. The training was facilitated by SICPA SA, MRA’s partner in the implementation of the Kalondola Tax Stamp system. Renowned technical expert Mr. Jerome Duperrutfrom SICPA, led the session, delivering practical insights and tools to help MRA staff evaluate the contribution of tax stamps to revenue collection.

Participants included officers from the Domestic Taxes Division, Customs Division, Enterprise-Wide Risk Management Division, and the Policy, Planning and Research Division, a testament to MRA’s integrated approach to revenue mobilization.

The core objective of the training was to equip staff with robust methodologies for analyzing the fiscal performance of the Kalondola system. By understanding the measurable impact of tax stamps, MRA aims to improve compliance monitoring, strengthen enforcement strategies, and make data-driven decisions that optimize revenue collection.

Speaking at the event, Mr. Kondwani Sauti-Phiri, Deputy Commissioner for Systems and Business Analysis, highlighted MRA’s revenue target of MWK4.3 trillion for the 2025/26 financial year, a 38% increase from the 2024/25 financial year target. He emphasized that tax stamps are among the key measures that will help MRA achieve this ambitious goal.

“The tax stamps will help MRA collect more revenue, reduce smuggling, promote fair business practices, and protect the public from harmful products,” he said. Mr. Duperrut guided participants through practical methods of using actual MRA data to assess the impact of tax stamps. A key highlight of the session was the presentation of a compelling case study showing that revenue from beer products increased from MWK12.3 billion to MWK21.9 billion following the introduction of tax stamps, a significant 77.59% increase. This example demonstrated the powerful role of tax stamps in curbing illicit trade and improving compliance.

He also introduced both basic and advanced techniques for comparing revenue collections before and after the implementation of tax stamps. Mr. Deperrut explained how to identify patterns such as seasonal fluctuations, long-term trends, and anomalies including economic disruptions like the COVID-19 pandemic that can influence revenue performance. Importantly, he addressed a common concern by reassuring participants that, based on international experience, the use of tax stamps does not lead to increased consumer prices as the system targets manufacturer and distributor compliance rather than end-user costs.

Also speaking during the session, Mr. Mussa Chayenda, Chief Finance Manager of SICPA Malawi, reaffirmed SICPA’s continued commitment to supporting MRA in strengthening the monitoring and evaluation of the tax stamps programme. He further pledged to share pre-rollout market data to assist MRA in assessing any potential impacts of tax stamps on prices.

In closing, Mrs. Miriam Mhango from the Policy, Planning and Research Division thanked SICPA for their continued support and expressed MRA’s interest in future engagements.

To recognize their active participation and contributions, all participants received certificates of attendance at end of the training.

This initiative reflects MRA’s unwavering commitment to data-driven decision-making, strategic partnerships, and continuous capacity building, cornerstones of its vision and mission to deliver efficient, effective, and equitable revenue services that support Malawi’s development.

CHIGOMEZGO MHANGO.