By Tikondane Vega

Lilongwe, August 6, Mana: Public Accounts Committee of Parliament says it fully supports Malawi Revenue Authority (MRA) idea to fully use tax stamp as a tool to eliminate goods smuggling into the country.

Chairperson of the committee, Mark Botomani said this on Tuesday in Lilongwe after inspecting MRA Warehouse and unchartered routes that smugglers use.

Botomani said now that the committee has hands-on experience on how people smuggle goods into Malawi, there is no problem for MRA to use tax stamps on products saying doing so could also be protecting other business people.

“After our inspecting today we have noticed that smuggling is a huge problem and the only solution to prevent it is by bringing different mechanisms like tax stamps. No country can run without taxes and MRA needs our support.

“Likely, the stamping issue has the potential to reduce smuggling and that’s the only solution since the government is losing a lot of money through smuggling of goods. That’s invading tax. However, MRA should continue sensitizing the public on the matter,” said Botomani.

On his part, MRA’s Commissioner General, John Bizwick said the goal behind tax stamp is to protect and safeguard local industries and consumers from unfair competition posed by illicit, smuggled, and counterfeit excisable products.

He said the idea also seeks to ensure that consumers are not exposed to unbranded and potentially hazardous imports, which could be detrimental to health.

“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.

“Because of smuggling, the market share of products that have been produced in Malawi has been impacted negatively. By bringing in tax stamps, local industry will be saved from the competition of smuggled products,” he explained.

The stamp endorsement is coming just a day after another committee of industry, trade and tourism led by Paul Nkhoma did the same on Monday after doing an inspection.

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