MRA to introduce tax stamps

The Malawi Revenue Authority (MRA) is set to introduce tax stamps on a range of products as one way of flushing out smuggled products into the country.

Some of the products that will require tax stamps before they are sold on the local market include; bottled water, carbonated soft drinks, malt beer, wines, opaque beer, and whiskies.

Tax stamps are stamped on products to show that the manufacturers have met their tax obligations but also to show that the products are fit for human consumption.

Malawi Revenue Authority Corporate Affairs manager Steven Kapoloma points out that the tax stamps will help to protect local producers from unfair competition from foreign products that are not tax compliant.

Kapoloma added that tax stamps have proven to be effective in countries like Uganda, and Tanzania where the market share for local producers increased by more than thirty percent as demand rose after flushing out illegal products on the market.

“The local industry will be saved from unfair competition of smuggled products because only legitimate products will have the stamp, and only legitimate products will find their way onto the market, the rest of the products will be destroyed,” Kapoloma told Capital FM.

Kapoloma hopes the initiatives will not only protect the local industry, but also protect consumers and boost tax revenues.