Members of Parliament have lauded the Malawi Revenue Authority (MRA) for extending excise tax stamps on other products as a strategic measure to combat the smuggling of goods into the country.
Paul Nkhoma, Chairperson of the Committee on Industry, Trade, and Finance, made the remarks after a tour organised by the MRA. The tour aimed to expose legislators and journalists to the country’s porous borders and the methods smugglers use to bypass MRA offices and evade taxes.
“We have toured uncharted routes used by smugglers and inspected warehouses storing goods confiscated from smugglers. Smuggling is real and deprives the country of much-needed revenue for development. As Members of Parliament, we will support MRA’s efforts to engage communities on the dangers of smuggling,” said Nkhoma.
Dr Matthews Ngwale, Parliamentary Chairperson for the Health Committee highlighted the health risks associated with smuggling.
“We have seen at Salati and Dickson Trading centres how smugglers use motorcyclists (‘Kabaza’ operators) to evade taxes. Some of the smuggled spirits are hazardous to health. Our people are consuming toxic and poisonous drinks. This initiative of tax stamps will help curb such malpractices,” said Dr Ngwale.
MRA’s Commissioner General, John Biziwick, outlined a three-pronged approach to curb smuggling.
“We will intensify community engagement to ensure people living along the borders do not aid smugglers. Additionally, we will use drones to monitor activities at the borders, and tax stamps will enable our officers and security agents to determine whether taxes have been paid,” Biziwick explained.
Recently, the Head of Corporate Affairs at MRA highlighted the significant revenue losses due to smuggling.
“Last year, we intercepted K1.3 billion worth of revenue that would have otherwise been lost without our patrols and anti-smuggling activities,” Kapoloma said.
