Tag Archives: Malawi digital Tax Stamps

Business

“Don’t purchase or stock any spirits that lack proper tax stamps”- Castel Malawi warns customers

MaraviPost

BLANTYRE-(MaraviPost)-Castel Malawi, the country’s leading spirit and beer producer, has issued a strong warning to customers against purchasing its products without tax stamps and urged vigilance to help combat counterfeit goods.

The company called on consumers to report any suspicious products bearing the Castel name but lacking digital tax stamps to the nearest Castel distribution representative nationwide.

In a statement issued on Monday, July 21, 2025, Castel Malawi Managing Director Thomas Reynaud highlighted the health risks posed by counterfeit products and emphasized the need for consumer awareness.

“Castel Malawi Limited urges all customers to remain highly vigilant and ensure that all spirits purchased are genuine and fully compliant with legal standards,” Reynaud said. “Authentic Castel spirits carry tax stamps, date stamps, and batch numbers, which confirm their legitimacy and regulatory compliance.”

He further cautioned, “Do not purchase or stock any spirits that lack proper tax stamps, date stamps, and batch numbers.

“We sincerely thank you for your continued trust and partnership. Together, we can ensure a safe and compliant market for all consumers.”

Castel Malawi, which manufactures an extensive range of beers and spirits including national favorites like Castel Beer and Kuche Kuche, and spirits such as Malawi Gin, Malawi Vodka, and Premier Brandy, has become the first local company to publicly embrace the digital tax stamp initiative introduced by the Malawi Revenue Authority (MRA) in 2024 to curb illicit products.

MRA’s digital tax stamp solution, dubbed Kalondola, was rolled out in two phases.

Phase One, which began in May 2024, covers tobacco cigarettes and alcoholic beverages such as beer, wine, spirits, whisky, and opaque beer, as well as non-alcoholic drinks.

Phase Two, which started in July 2024, extended the requirement to bottled water, carbonated soft drinks, drinks made from cereals, energy drinks, fermented sweet tea, lotions, and glycerine.

According to MRA, Kalondola was introduced following amendments to the Customs & Excise Act and is implemented by SICPA Malawi, which won the contract after a competitive procurement process in 2023.

The solution is internationally recognized for improving tax compliance, enhancing consumer protection, and promoting fairness in the industry.

Rosemary Mkandawire, Deputy Commissioner Operations at the MRA, described the initiative as a significant step forward in combating counterfeit goods.

“Kalondola represents a major milestone in our fight against illicit trade and counterfeit goods in Malawi. By ensuring that only legitimate and compliant products reach consumers, we are protecting public health, securing government revenue, and creating a level playing field for local businesses,” Mkandawire said.

“The success of this initiative reflects the commitment of our partners, including manufacturers, to uphold the highest standards of compliance and consumer safety.”

Since 2024, SICPA Malawi has trained MRA officers nationwide through theoretical and practical sessions, including field visits to various border posts to assess adherence to excise tax stamp regulations among customs officials and importers.

Business, Law and order, Malawi

MRA seizes MK85 million in smuggled goods as Digital Tax Stamps tighten compliance

MaraviPost

LILONGWE-(MaraviPost)-The Malawi Revenue Authority (MRA) has intercepted MK85 million worth of smuggled goods in Lilongwe, marking a major breakthrough in enforcing the Kalondola Digital Tax Stamp system.

Acting on a tip from a patriotic citizen, MRA and police raided a warehouse in Area 4, Lilongwe, where illicit goods – including body care products, diapers, and other taxable items – were being offloaded without proper customs clearance.

Crackdown on Tax Evasion

To strengthen compliance, MRA has ramped up spot checks at retail shops, wholesalers, and liquor stores, following a directive from Finance Minister Simplex Chithyola Banda in his mid-year budget review.

While adherence to the tax stamp system is improving, some importers and manufacturers continue to evade regulations by failing to affix the required stamps on excisable products.

Smuggling Hurts National Development

Grace Chilima, Deputy Manager of MRA’s FAST Centre, stressed the impact of tax evasion and said, “Had these goods reached the market undetected, Malawi would have lost revenue crucial for roads, schools, hospitals, and civil servant salaries.”

She urged the public to remain vigilant and report illegal trade, warning that smuggling directly undermines national progress.

MRA has vowed to eliminate tax evasion. Kalondola Project Manager Steven Kuntembwe emphasized that spot checks will continue to enforce tax stamp laws and penalize offenders.

“Failure to affix or activate tax stamps, as well as trading in unstamped excisable products, will result in penalties,” Kuntembwe warned.

He urged businesses to comply, noting that enforcement is about ensuring fairness in the marketplace.

Digital Tax Stamps: A Revenue Game Changer

The Kalondola tax stamp system, introduced after amendments to the Customs & Excise Act, now covers a range of excisable products beyond cigarettes, including alcoholic beverages, soft drinks, bottled water, and personal care items.

The system, implemented by SICPA Malawi after a competitive procurement process in 2023, is globally recognized for improving tax compliance, consumer protection, and industry fairness.

By leveraging cutting-edge fiscal technology, SICPA Malawi is helping the country to foster a transparent business environment that attracts investment and funds social services like healthcare, education, and infrastructure.

In 2019, Tanzania rolled out the Electronic Tax Stamp Management System (ETSMS), a key and most robust system supporting the discovery of smuggled or illicitly traded products in the market, heralding an end to the previous tax administration solution.

ETMS is cited by the International Monetary Fund as a measure increasing tax collection in Tanzania.

High-Tech Enforcement

MRA officers have been trained to monitor compliance using advanced tools like the Horizon EVO Web Application and the Kalondola365 mobile app provided by SICPA Malawi.

As tax enforcement tightens, MRA urges businesses to embrace compliance – not just to avoid penalties but to support Malawi’s long-term economic growth under the Malawi 2063 Agenda.

Business, Malawi

Digital Tax Stamps: The Journey to Implementation in Malawi

Lloyd M’bwana

BLANTYRE-(MaraviPost)-Many governments including Malawi are seeking to drastically reduce illicit trade practices such as under-declaration, tax evasion, smuggling, counterfeiting, and the distribution of unauthorized goods to safeguard tax revenues and protect consumers.

An enhanced tax stamp management system combines physical security features with an integrated digital traceability platform.

This platform enables governments to monitor the production, import, export, and distribution of products subject to excise duty (e.g., tobacco, spirits, various alcohols, and sometimes soft drinks or sensitive products such as agricultural fertilizers) on a national scale.

In a bid to introduce digital tax stamps, Malawi Revenue Authority (MRA) launched a Request for Proposals (RFP) in March 2022, following International Bidding Procedures to procure a solution aimed at enhancing its tax collections.

Digital Tax Stamps help good smuggling

Ahead of the RFP, SICPA demonstrated its solution in Malawi in August 2021, with site visits organized to Tanzania and Uganda for a team from Domestic Taxes Division under MRA, showcasing its successful implementation in the region.

SICPA officially submitted its bid on March 29, 2022. To ensure a thorough evaluation, Government-to-Government (G2G) due diligence visits were conducted in May 2022 to Kenya and Morocco, where similar systems were assessed.

More than 180 states worldwide have placed their trust in SICPA’s platform for sovereignty.

Created in 1927, SICPA has 13 production sites and over 3.000 employees on 5 continents, including Africa. In Malawi, local staff work from offices in Lilongwe, Blantyre, and Mzizi.

Today, more than 15 industries rely on SICPA’s products and brand protection solutions, including pharmaceuticals, cosmetics, agrochemicals, seeds, luxury goods, and consumer and industrial products, with billions of products marked per year worldwide.

The journey between MRA and SICPA concluded successfully in September 2023, with the formal signing of the current contract.

During the 2024-25 Mid-Year Budget Review, Finance Minister Simplex Chithyola described Digital Tax Stamps as a “critical measure”.

This system strengthens Malawi’s revenue collection framework by ensuring products in the market are legitimate, tax-compliant, and businesses contribute their fair share to government revenue,” said Chithyola.

The Minister added, “It directly tackles challenges of tax evasion and discourages smuggling by enabling the identification of non-compliant goods.”

Kondwani Sauti-Phiri, MRA’s Deputy Commissioner for Domestic Taxes, revealed that manufacturers and importers have embraced the system.

This is evidenced by the ever-growing number of stamps ordered by manufacturers and importers, as well as new registrations for the system by these stakeholders.

“We’ve engaged extensively with stakeholders, including manufacturers, wholesalers, and cross-border traders, to ensure smooth adoption of the excise tax stamp system,” said Sauti-Phiri.

He emphasized that the system not only enhances tax compliance but also protects local industries from unfair competition caused by smuggling, counterfeit goods, and illicit trade.

Sauti-Phiri further explained that the system is designed to protect the public from consuming hazardous products.

While tax stamps have been applied to cigarettes for over a decade, their scope now includes a broader range of excisable products such as alcoholic beverages, including beer, wines, spirits, whiskies, and opaque beer; non-alcoholic beverages, such as bottled water, carbonated soft drinks, energy drinks, fermented tea, and Mahewu; as well as personal care products like lotion and glycerine.

The implementation of Digital Tax Stamps in Malawi signifies a transformative advancement in tax administration.

By enhancing tax compliance, safeguarding government revenue, and protecting consumers from illicit goods, this initiative demonstrates MRA’s commitment to a robust and transparent tax system.

Business, Malawi

MRA, Small Scale Cross-Border Association agree to tackle smuggling, implement digital tax stamps

Maravi Post Reporter

BLANTYRE-(MaraviPost)-In an effort to ensure the smooth implementation of digital tax stamps, the Malawi Revenue Authority (MRA) and the Small Scale Cross-Border Association (SSCA) have reached an agreement to jointly tackle the smuggling of goods and services.

This collaboration is intended to enhance the success of the digital tax stamp initiative in Malawi.

The agreement was formalized during a joint meeting held on October 2, 2024, between representatives from the Ministry of Finance, MRA, and SSCA.

A press statement signed by Greclum Kandio (Ministry of Finance), Kondwani Sauti-Phiri (MRA), and Richard Kampanje (SSCA) outlined the resolutions aimed at addressing challenges in the implementation of tax stamps.

The statement emphasized that smuggling is a significant issue affecting small businesses, tax revenue, and public health.

Consequently, all parties have committed to collaborate in combating smuggling and tax evasion.

It was agreed that small-scale importers will be allowed to continue importing and supplying specified excisable products without tax stamps, provided they produce valid customs clearance documents to buyers.

This arrangement will remain in place until the MRA resolves any remaining administrative challenges.

Furthermore, the SSCA will provide a list of their clients, including the business name, buyer’s name, and location, as soon as possible.

The Ministry of Finance, through either the Minister or the Secretary to the Treasury, will organize a meeting with SSCA leaders, in conjunction with the Ministry of Trade, to further discuss these matters.

This agreement will remain effective until that meeting is held.

The MRA continues to intensify efforts to curb rampant smuggling in Malawi by introducing digital tax stamps as a compliance tool.

The aim is to ensure that imported and locally manufactured goods pass through official channels and that taxes are paid before these goods enter the market.

A tax stamp, whether physical or digital, is affixed to a product to indicate that excise tax has been paid, forming part of a broader effort to improve compliance and secure tax revenue.

Digital tax stamps are equipped with a range of security features, such as color-shifting inks, microprinting, and unique serial numbers or QR codes.

These features not only make tax stamps resistant to counterfeiting and tampering but also enable authorities to trace products throughout the supply chain, ensuring greater transparency and accountability for excisable goods.