Africa-Press – Tanzania. PRODUCERS and importers of carbonated soft drinks and bottled water have until end of this month to affix their products with Electronic Tax Stamps (ETS) when the Tanzania Revenue Authority (TRA) implements the third phase of the system.
The latest phase will also include local and imported fruit and vegetable juices in addition to recorded music and film products.
Through a notice issued by the Commissioner General of TRA, Dr Edwin Mhede, on October last year, the tax collector announced commencement of the third phase on rolling out of the digital stamps effective November last year.
However, the producers and importers were given a grace period of three months which ends on January this year to clear stock which was not affixed with the digital stamps, after which all the said products must be stamped electronically.
The introduction of ETS is part of enforcement of Section 5 (1) of the Tanzania Revenue Act Chapter 399 R.E of 2019 which requires all excisable goods to be affixed with the digital stamps.
The enforcement of the legislation is implemented through Regulations for Electronic Tax Stamps Management System of 2018.
In the latest phase, Dr Mhede directed producers, importers, distributors and retailers of the said products to submit details of their brands and the quantity of the stamps they will require for a year so that they can be registered in the Electronic Tax Stamps Management System (ETSMS).
The first phase of the system was introduced in January 2019 through a Swiss company Société Industrielle et Commerciale de Produits Alimentaires (SICPA) which provides both software and hardware for the technology.
Through the initial stage products which are subjected to excise duty are tobacco products, wines, spirits and beers.
The second phase came into force in August 2019 and covered additional products such as sweetened bottled water.
The new digital system which replaces the hitherto physical paper tax stamps is meant to curb cheating of taxes through under declaration by some dishonest manufacturers and importers.
Application of ETS for the excisable goods enables TRA to track on real-time actual production at factories and imports and eventually facilitates collection of requisite taxes and curb fake products in the local market.
