Tax stamps crucial to curb smuggling
The Chairperson of the Board of Directors of the Malawi Revenue Authority, Vizenge Kumwenda, has hailed the importance of electronic tax stamps in curbing smuggling, enhancing revenue collection, and improving trade statistics.
The Board Chairperson was speaking during a recent visit to Tanzania to appreciate the operation of electronic tax stamps and their impact on the country's economy.
“Let me start off by acknowledging that Management has briefed us on electronic stamps within the confines of the boardroom, and while we grasped their importance, the visit has offered us a depth of understanding that management alone could not provide,” Kumwenda stated.
During the visit, MRA board members were hosted by the Tanzania Revenue Authority, where they received detailed explanations from the project manager regarding the functioning of tax stamps.
Subsequently, the board visited a wine importer and cigarette manufacturer involved in tax stamp implementation.
Kumwenda noted the unique insights gained during the visit, recognizing that challenges faced by the tax stamp initiative in Malawi are not exclusive to the country but are inherent in the process.
“It was very encouraging to see taxpayers complying and cooperating with the Tanzania Revenue Authority firsthand, hearing directly from them about the benefits and areas for improvement,” Kumwenda remarked.
Of particular significance was observing how the electronic stamp system seamlessly integrates into taxpayers' production and processes. This dispelled rumours about the feasibility of tax stamps, demonstrating that successful implementation is achievable through cooperation between taxpayers and the Malawi Revenue Authority.
Furthermore, the board recognized the potential of tax stamps in curbing smuggling, enhancing revenue collection, and improving trade statistics. The board observed that statistical data generated by the system will aid not only the MRA but also the government in effective revenue planning, facilitating the transition of the informal sector into the formal economy.
The board's visit to Tanzania, took place from April 29th and 30th 2024, included members of the management team, led by the Commissioner General John Biziwick.
BY STEVEN KAPOLOMA
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