MRA says Kalondola boosting tax revenues

Malawi Revenue Authority (MRA) says its Kalondola initiative has increased excise tax revenue by improving accountability, with head of corporate affairs Wilma Chalulu saying some local manufacturers have recorded revenue increases of up to 200 percent. Kalondola uses machines installed on production lines to track excisable products, in the process allowing MRA to monitor production and excise tax obligations in real time. The system was introduced in 2024 following an amendment to the Customs and Excise (Excise Tax Stamps) Regulations, 2024.

Speaking in Blantyre during a media interaction conducted by the tax collection body to brief journalists on excise tax stamps and progress since their introduction, Chalulu said MRA can now determine the actual number of stock-keeping units. “With the installation of these machines on the production lines, we are now able to see in real time how many products have gone through the system,” she said. The authority has since installed 22 machines at 14 sites, including Castel Malawi, Chibuku Products Limited, Rab Processors, Coca-Cola and Nyasa Manufacturing Company.

MRA contracted SICPA, a Switzerland-based security firm, to supply the tax stamps. According to Chalulu, the system applies to all manufacturers whose products are subject to excise tax, as well as local importers of excisable goods. She said MRA also monitors imported products at borders to ensure tax stamps are genuine and correctly applied.

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Chalulu said consumers can use the Kalondola 365 application to verify products and determine whether they are genuine. She said the system is intended to combat counterfeit and illicit products while helping consumers establish whether products originate from legitimate companies. “We need to ensure that there are no counterfeit products on the market.

The Kalondola tax stamps assure customers that they are buying a genuine product from the right company,” she said. Chalulu said stronger public understanding of taxation could help increase domestic revenue mobilisation and support government programmes. But while commending MRA for increased excise tax revenue and enhanced accountability, economist Brave Zimba said the gains must translate into tangible improvements in the country’s fragile economy.

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