The Malawi Revenue Authority (MRA) has bolstered its fight against tax evasion, thanks to a nationwide training program that has equipped its officers with expertise in utilizing the innovative Digital Tax Stamp system.
A comprehensive training program, held from November 14 to December 6, 2024, was facilitated by SICPA, a renowned global expert in secure tax stamp technologies.
The program drew 60 participants who took part in both theoretical and practical sessions, including field visits to the Mchinji Customs Border to assess compliance with excise tax stamp regulations.
Finance Minister Simplex Chithyola emphasized the importance of the Digital Tax Stamp system, describing it as a “critical measure,” that tackles challenges of tax evasion and discourages smuggling by enabling the identification of non-compliant goods.
“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.
Kondwani Sauti-Phiri, MRA’s Deputy Commissioner for Domestic Taxes, revealed that manufacturers and importers have embraced the system, with a growing number of stamps ordered and new registrations for the system.
“We have engaged extensively with stakeholders, including manufacturers, wholesalers, and cross-border traders, to ensure smooth adoption of the excise tax stamp system,” said Sauti-Phiri.
According to Sauti-Phiri, the Digital Tax Stamp system offers dual benefits: it promotes tax compliance while also shielding local industries from unfair competition fueled by illicit activities, and safeguarding the public from hazardous products.
The Digital Tax Stamp system has been praised by the International Monetary Fund (IMF) for its role in transforming tax collection in Tanzania and endorsed by the World Health Organization (WHO) as a benchmark fiscal technology.
The system allows real-time tracking and compliance monitoring of tax stamps on excisable goods, including alcoholic beverages, non-alcoholic beverages, and personal care products.
SICPA, contracted by the MRA in September 2023 through a competitive procurement process, specializes in implementing digital and paper-based fiscal marking systems for excise product regulation.
