…..MRA attributes the 13.67 percent surplus in excise revenue collections to improved compliance under the Kalondola system.
BLANTYRE-(MaraviPost)-The Malawi Revenue Authority (MRA) says the Digital Tax Stamps system, also known as Kalondola, has significantly improved excise tax compliance and boosted revenue collections since its rollout in 2024.
MRA Head of Corporate Affairs Wilma Chalulu told The Maravi Post in an interview that the introduction of mandatory tax stamps has forced previously informal manufacturers to register, contributing to strong growth in excise revenues.
“This shift has led to exponential revenue growth. For example, excise tax payments in the alcoholic beverages sector have increased by 500 to 600 percent, with similar upward trends in non-alcoholic beverages,” she said.
MRA has also exceeded its domestic excise revenue target, collecting about K168.86 billion against a target of K155.16 billion.
Chalulu said the system differs from the previous self-assessment model, which she described as prone to underreporting and offering limited oversight of production volumes.
She said the current regime uses a track-and-trace system that enables real-time monitoring of production, improves transparency and strengthens accountability among manufacturers.
According to Chalulu, the system has also made it harder for illicit products to enter the market, as smuggled or unlicensed goods cannot easily obtain secure excise stamps.
She said the number of registered excisable goods manufacturers has more than doubled, from 51 before implementation to 114 currently, which she attributed to increased formalisation in the sector.
Chalulu said 22 production lines are now being monitored through digital systems, including Secure Coding Lines for beverages and the Secure Activation System for tobacco products, across the country’s regions.
On enforcement, she said MRA has imposed penalties totalling about K1.46 billion as of February 28 2026, following measures such as product embargoes, detentions and seizures.
“To sustain this momentum, the Authority is deploying 24-hour surveillance, with technicians stationed at production facilities and enforcement officers at strategic checkpoints,” she said.
“We are also utilising Flexible Anti-Smuggling Teams to conduct rapid, unannounced inspections.”
Chalulu said MRA is also carrying out inspections at retail and wholesale outlets to remove unstamped or improperly stamped goods, while requiring stamp procurement and activation at entry points for imports.
She said public sensitisation campaigns are ongoing to improve compliance among manufacturers, importers and distributors.
She said overall compliance has improved, citing better record keeping and stronger adherence to licensing and reporting requirements.
However, she noted that some challenges persist in parts of the non-alcoholic beverages sector, particularly among some importers, and said MRA is addressing these through targeted engagement and enforcement.
The Kalondola system was introduced in 2024 following a 10-year agreement between MRA and SICPA Malawi, a subsidiary of Switzerland-based SICPA SA, aimed at modernising excise tax collection and strengthening accountability.
The system uses secure tax stamps that combine material and digital security features, allowing both authorities and consumers to verify product authenticity while helping detect illicit trade such as counterfeiting and smuggling.
It was rolled out in phases, with the first phase in May 2024 covering cigarettes, alcoholic beverages and non-alcoholic drinks, and the second phase extending to products such as bottled water, soft drinks, energy drinks, lotion and glycerine.
The system also improves oversight across the supply chain, particularly for excisable goods that have historically been vulnerable to under-declaration and illicit trade.
MRA has also integrated the system with the Automated System for Customs Data to streamline import processes.
Institute of Chartered Accountants in Malawi chief executive Noel Zigowa said the system also helps protect consumers.
“The requirement for a secure excise tax stamp discourages operators from openly selling illicit goods, as smuggled and unlicensed products cannot easily obtain or replicate official stamps,” he said.
Digital excise tax stamps are not unique to Malawi. Several countries, including Tanzania, Democratic Republic of Congo, Kenya, Morocco, Sierra Leone, The Gambia, Togo and Uganda, have adopted similar systems.
The International Monetary Fund has previously highlighted track and trace systems as tools for improving tax administration and strengthening revenue collection.