IMPLEMENTATION OF EXCISE TAX STAMPS ON VARIOUS EXCISABLE PRODUCTS (KALONDOLA)

The Malawi Revenue Authority (MRA) is pleased to inform the business community and the general public that following the entry into force of the Customs and Excise (Excise Tax Stamps) Regulations, 2024, as communicated in the Public Notice published on 9th February, 2024, the implementation of the Excise Tax Stamp regime, extending the affixation of excise tax stamps from cigarettes to various excisable products, commenced on 1st May 2024. 

The Excise Tax Stamp regime has been branded “Kalondola,” meaning tracking or tracing Excise Tax on excisable products.

The roll-out of the excise tax stamps is in two phases as laid out in the table below. All manufacturers, importers and distributors of excisable goods requiring excise tax stamps as outlined in the First Schedule to the Customs and Excise (Excise Tax Stamps) Regulations, 2024 (the listed excisable goods), are required to comply accordingly.

Phase One

EFFECTIVE DATE:  1st May, 2024

TRANSITION DEADLINE: 31st July, 2024

EXCISABLE PRODUCTS:

Tobacco cigarettes, alcoholic beverages (beers, wines, spirits, whisky, opaque beer) and non-alcoholic beer

Phase Two

EFFECTIVE DATE: 1st July, 2024

TRANSITION DEADLINE: 30th September, 2024

EXCISABLE PRODUCTS:

Bottled water, carbonated soft drinks, drinks made from cereals, energy drinks, fermented sweet tea, lotion and glycerin

Manufacturers, importers and distributors of the listed excisable goods are advised to take particular note of the key requirements of the Kalondola regime  as follows:-
Mandatory Affixation of Tax Stamps

It is mandatory for all listed excisable goods to be affixed with valid tax stamps. The stamp serves as proof of compliance with excise duty obligations.

 

Registration of Manufacturers, Importers and Distributors

All manufacturers, importers and distributors of the listed excisable goods are required to register with MRA and obtain necessary approvals for participation in the Kalondola regime.

Traceability and Authentication

The excise tax stamps enable enhanced traceability and authentication of excisable goods throughout the supply chain, from production to retail.

Compliance Monitoring and Enforcement

MRA will regularly monitor and enforce compliance with the laws regarding excise tax stamps. Non-compliance shall attract the sanctions prescribed under the laws including seizure, penalties and fines.

Transition Period

In line with the upcoming enforcement of the implementation of the Kalondola regime and to ensure orderly clearance of existing stock of unmarked (unstamped) products, MRA has granted a three (3) months transition period, as stipulated in the table above, to facilitate the sell or disposal of unmarked goods produced or imported before the roll-out date.

During this transit period-

(a)  Sell or Disposal of Unmarked Products: Manufacturers, importers and distributors are permitted to sell or dispose of existing stock of unmarked (unstamped) products that were produced or imported before the roll-out date. However, the products must be sold or disposed of within the specified period.

 

(b)  Notification Requirement: Manufacturers, importers and distributors must notify MRA of their intention to sell or dispose of unmarked (unstamped) products during the transition period. This notification should include details such as the quantity and type of products involved, intended methods of disposal and any other relevant information.

 

(c)  Documentation and Record-Keeping: Manufacturers, importers and distributors must maintain detailed records regarding the sell or disposal of unmarked products during the transition period. This includes records of quantities sold, methods of disposal and any related transactions.

(d)  Deadline for Compliance: The transition deadlines for Phase I and Phase II are 31st July, 2024 and 30th September, 2024, respectively. By those dates, all remaining stock of unmarked products must be sold or disposed of, failing which, the manufacturers, importers and distributors must affix  excise tax stamps to any remaining stock of unmarked products.

(e)  Non-compliance: It is important for manufacturers, importers and distributors to take advantage of this transition period to ensure a smooth transition to the Kalondola regime. Failure to comply with the requirements of the transition period may result in sanctions as prescribed under the laws.

Public Awareness and Education

MRA is committed to facilitating a smooth transition to the Kalondola regime. Accordingly, MRA is conducting awareness campaigns and providing educational materials to stakeholders to ensure they understand their rights and obligations to ease compliance.

Detailed guidelines and procedures are available and can be accessed through official communication channels. Manufacturers, importers and distributors are therefore urged to familiarize themselves with the requirements of the laws on excise tax stamps and take necessary steps to ensure compliance.

For further information and enquiries, contact us on the following-

Telephone: +265 (0) 1 832 685 | WhatsApp: 0996278690 | Toll-Free: 672 | E-mail: Call Centre@mra.mw | www.mra.mw

 

 

John S. Biziwick

COMMISSIONER GENERAL