HRDC commends MRA for proactive, inclusive approach in tax stamps rollout
Human Rights Defenders Coalition (HRDC) has commended the Malawi Revenue Authority (MRA) for its proactive and inclusive approach in rolling out the tax stamps.
The commendation comes amidst debate being advanced by some civil society organizations (CSOs) on the introduction of tax stamps by the revenue collector.
Apparently, the concerned organizations are against the introduction of tax stamps, arguing its one way of ripping off businesspeople.
But HRDC has defended the move, stressing the need for Malawians to see a broader picture and how tax stamps can positively impact both the economy and the welfare of Malawians.
The coalition’s chairperson, Gift Trapence, said in a statement issued on Thursday that by engaging with a wide range of stakeholders, including CSOs, MRA has shown a commendable commitment to transparency for the process.
“This inclusive approach ensures that the voices and concerns of all affected parties are heard, which is essential for the successful implementation of such important initiatives. Tax stamps are more than just a tool for revenue collection; they are vital for strengthening the government’s capacity to fund essential services. Proper funding for healthcare, education, and infrastructure is key to realizing the right to health, the right to education, and the right to an adequate standard of living. By ensuring that goods are properly taxed, we can significantly enhance the government’s ability to provide these critical services, directly benefiting every Malawian,” said Trapence.
He added that tax stamps are instrumental in combating tax evasion and fraud as they provide a clear, verifiable proof of tax payment, helping to prevent illegal trade practices and ensuring that businesses adhere to tax regulations.
According to Trapence, this will promote fairness in the marketplace and protect consumers by ensuring they receive quality and safe products.
“The introduction of tax stamps also helps to level the playing field for local industries. By taxing imported goods appropriately, we protect local businesses from unfair competition, supporting their growth and sustainability. Additionally, tax stamps serve as a strong deterrent to potential tax evaders. When businesses know that a robust system is in place to verify tax payments, they are more likely to comply with regulations,” he said.
“We must therefore weigh the tax stamps initiative against the long-term benefits of a transparent and efficient tax system. A well-implemented tax system supports good governance, accountability, and the rule of law, which are crucial for safeguarding the rights of consumers to health and life and fair trade to businesses. HRDC is in support of the introduction of a”n efficient tax stamp by MRA and calls on all stakeholders to work together to ensure that the implementation of tax stamps is done in a way that minimizes any negative impacts on consumers while maximizing the positive outcomes for our nation. Let us support this initiative to strengthen our tax system and promote fairness, transparency, and the protection of fundamental rights for all Malawians,” concludes the statement.
