The Malawi Revenue Authority (MRA) has made a significant breakthrough in enforcing the Kalondola Digital Tax Stamp system, intercepting MK85 million worth of smuggled goods in Lilongwe.
Acting on a tip from a patriotic citizen, MRA and police raided a warehouse in Area 4, Lilongwe, where illicit goods, including body care products, diapers, and other taxable items, were being offloaded without proper customs clearance.
The crackdown on tax evasion is part of MRA’s efforts to strengthen compliance with the Kalondola Digital Tax Stamp system. MRA has increased spot checks at retail shops, wholesalers, and liquor stores, following a directive from Finance Minister Simplex Chithyola Banda in his mid-year budget review.
Grace Chilima, Deputy Manager of MRA’s FAST Centre, emphasized the impact of tax evasion on national development. “Had these goods reached the market undetected, Malawi would have lost revenue crucial for roads, schools, hospitals, and civil servant salaries,” she said.
Chilima urged the public to remain vigilant and report illegal trade, warning that smuggling directly undermines national progress.
MRA has vowed to eliminate tax evasion, with Kalondola Project Manager Steven Kuntembwe emphasizing that spot checks will continue to enforce tax stamp laws and penalize offenders. “Failure to affix or activate tax stamps, as well as trading in unstamped excisable products, will result in penalties,” Kuntembwe warned.
The Kalondola tax stamp system, introduced after amendments to the Customs & Excise Act, covers a range of excisable products, including alcoholic beverages, soft drinks, bottled water, and personal care items. The system is globally recognized for improving tax compliance, consumer protection, and industry fairness.
MRA officers have been trained to monitor compliance using advanced tools like the Horizon EVO Web Application and the Kalondola365 mobile app provided by SICPA Malawi. As tax enforcement tightens, MRA urges businesses to embrace compliance, not just to avoid penalties but to support Malawi’s long-term economic growth under the Malawi 2063 Agenda.
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