Malawi Extends Tax Stamps Beyond Cigarettes

The Malawi Revenue Authority (MRA) has announced it will be expanding the use of excise tax stamps to a broader range of excisable products beyond cigarettes, following a 2021 amendment to the country’s Customs and Excise Act.

Bottled water, flavoured water, carbonated soft drinks, maheu (traditional maize-based drink), energy drinks, beer, wines, spirits, whiskies, skin care lotions and glycerines will now be subject to excise tax stamps.

This development has been welcomed by local manufacturers, such as Lilongwe Dairy 2001, which produces the popular maheu drink.

Managing Director Asif Karim said the company had been on the verge of shutting down the production of maheu due to unfair competition in the market. He said cheaper maheu imports from Zambia and Zimbabwe were entering Malawi through smuggling or preferential import rates under the COMESA (Common Market for Eastern and Southern Africa) trade agreement.

He said the dairy company is thrilled with the extension of tax stamps to excisable products other than cigarettes.