Digital Tax stamps taming illicit products on Malawi’s Market

BLANTYRE-(MaraviPost)-The introduction of digital tax stamps has brought sanity against illicit trade on Malawi market.

This comes barely two years after the initiative was introduced in Malawi.

Making assessment, The Malawi Revenue Authority (MRA) says two years after the introduction of the (Kalondola) Tax Stamps system has improved in tax compliance and revenue collection.

The authority has therefore installed 22 digital excise tax stamp machines in 14 sites aimed at tracking products that companies are supposed to pay excise duty.

Castel, Chibuku, Nyasa Manufacturing and Rab processors are some manufacturers where the machines have been installed.

MRA Head of Corporate Affairs Wilma Chalulu said that under declaration of goods was a challenge among some companies and with the coming of the machines(Kalondola system) they are now able to monitor the quantity of goods that companies are producing.

Chalulu told The Maravi Post that revenue collection has increased with the coming of the new system.

During the two years in review, Chalulu disclosed that some manufacturers recorded excise tax revenue increases of up to 200 per cent.

According to her, in the first quarter of the 2026/27 financial year, MRA collected MK56.8 billion in local excise tax, above a target of MK53.7 billion, representing a 106 per cent performance.

“Digital tax stamps or Kalondola serve three purposes, which are, raising revenue, compensating for negative externalities and moderating consumption of certain products.

“Kalondola is a game changer in controlling unbranded and counterfeit products as well as checking illicit trading and smuggling in the country,” lauds Chalulu.

She added, “The stamp is crucial in management of the levy on specified goods and services applied on importation, local production or provision of services.

“Therefore the specified goods under the first schedule of the Customs and Excise Tax Stamps Regulations of 2024, include alcoholic beverages”.

Chalulu explains further, “There are some non-alcoholic beverages such as bottled water, energy drinks and fermented sweet tea among others.

“Since the introduction of the Kalondola, MRA has managed to strengthen control on the market for excisable products”.

She appeals to consumers, “As we into third year of the program, consumers must be vigilant against illicit products on market by checking closely on legit tax stamps on cigarettes, drinks, alcohol for their health.

“We are working closely with Malawi Bureau of Standards addressing counterfeit products on the market that consumers’ safety is guaranteed”.

While appreciating the tax stamp implementation in Malawi, Manufacturers Association of Malawi President Gloria Zimba calls for stiff punishment against offenders to deter counterfeit products on the market.

In 2024, MRA partnered with technical firm SICPA Malawi to provide digital tax stamps, machinery to manufacturers in the implementation of Kalondola.

SICPA Malawi is a subsidiary of the Swiss-based SICPA SA, globally known for secure traceability and authentication technology.

Lloyd M’bwana

I’m a Lilongwe University of Agriculture and Natural Resource (LUANAR)’s Environmental Science graduate (Malawi) and UK’s ICM Journalism and Media studies scholar. Also University of Malawi (UNIMA) Library Science Scholar. I have been The Malawi Country Manager and duty editor for the Maravi Post since 2019. My duty editor’s job is to ensure that the news is covered properly, that it is delivered on time, and that it is created to the standards set out in the editorial guidelines of the Maravi Post.