MRA Strengthens Efforts to Combat Tax Evasion and Smuggling

The Malawi Revenue Authority (MRA) has successfully concluded an intensive nationwide training program designed to boost its capacity to combat tax evasion, curb smuggling, combat illicit trading thereby promoting tax compliance using Digital Tax Stamp system.

The training, conducted from 14th November to 6th December, 2024, was facilitated by SICPA, a global leader in secure tax stamp technologies and supply chain monitoring solutions.

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.

The Digital Tax Stamp system, 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, was at the heart of the training.

The program provided MRA officers with critical skills to monitor and enforce compliance of digital tax stamps using cutting-edge tools, including the Horizon EVO Web Application and the Kalondola365 mobile app.

These technologies allow real-time tracking and compliance monitoring of tax stamps on excisable goods.

About 60 participants engaged in both theoretical and practical sessions, including field visits to Mchinji Customs Border, where they evaluated adherence to excise tax stamp regulations among Customs border officials and importers. These hands-on exercises aimed to address real-world challenges and ensure effective enforcement. During the sessions, officers were also trained to orient key stakeholders – manufacturers, wholesalers, and retailers – on the correct use of tax stamps to enhance compliance across supply chains.

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

“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 the same 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, illicit trade. Sauti – Phiri further narrated that the system is there to protect the public from consumption of 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 MRA’s adoption of digital tax stamps reflects a growing commitment to leveraging technology to for efficient and effective tax administration

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