The Malawi Revenue Authority (MRA) has intercepted MK85 million value of smuggled items in Lilongwe, marking a significant breakthrough in implementing the Kalondola Digital Tax Stamp system.
Acting on a tip from a patriotic citizen, MRA and police raided a warehouse in Area 4, Lilongwe, the place illicit items – together with physique care merchandise, diapers, and different taxable objects – had been being offloaded with out correct customs clearance.
Crackdown on Tax Evasion
To strengthen compliance, MRA has ramped up spot checks at retail outlets, wholesalers, and liquor shops, following a directive from Finance Minister Simplex Chithyola Banda in his mid-year finances evaluate.
While adherence to the tax stamp system is enhancing, some importers and producers proceed to evade rules by failing to affix the required stamps on excisable merchandise.
Smuggling Hurts National Development
Grace Chilima, Deputy Manager of MRA’s FAST Centre, burdened the influence of tax evasion and stated, “Had these goods reached the market undetected, Malawi would have lost revenue crucial for roads, schools, hospitals, and civil servant salaries.”
She urged the general public to stay vigilant and report unlawful commerce, warning that smuggling straight undermines nationwide progress.
MRA has vowed to get rid of tax evasion. Kalondola Project Manager Steven Kuntembwe emphasised that spot checks will proceed to implement tax stamp legal guidelines 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 companies to conform, noting that enforcement is about guaranteeing equity within the market.
Digital Tax Stamps: A Revenue Game Changer
The Kalondola tax stamp system, launched after amendments to the Customs & Excise Act, now covers a variety of excisable merchandise past cigarettes, together with alcoholic drinks, gentle drinks, bottled water, and private care objects.
The system, applied by SICPA Malawi after a aggressive procurement course of in 2023, is globally acknowledged for enhancing tax compliance, shopper safety, and trade equity.
By leveraging cutting-edge fiscal expertise, SICPA Malawi helps the nation to foster a clear enterprise atmosphere that pulls funding and funds social providers like healthcare, schooling, and infrastructure.
In 2019, Tanzania rolled out the Electronic Tax Stamp Management System (ETSMS), a key and most strong system supporting the invention of smuggled or illicitly traded merchandise available in the market, heralding an finish to the earlier tax administration answer.
ETMS is cited by the International Monetary Fund as a measure rising tax assortment in Tanzania.
High-Tech Enforcement
MRA officers have been educated to observe compliance utilizing superior instruments just like the Horizon EVO Web Application and the Kalondola365 cellular app offered by SICPA Malawi.
As tax enforcement tightens, MRA urges companies to embrace compliance – not simply to keep away from penalties however to assist Malawi’s long-term financial development below the Malawi 2063 Agenda.
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