Author: HILDA MHAGAMA
AfricaPress-Tanzania: THE Tanzania Revenue Authority (TRA) is set to roll out the third phase of an electronic tax stamps management system (ETSMS) for additional products which are subjected to excise duty from November 1, this year.
According to a statement issued by TRA Commissioner General on October 21, 2020, Dr Edwin Mhede, the third phase will cover locally-produced and imported fruit and vegetable juices, bottled water in addition to CDs, VCDs, DVDs and recorded cassettes.
“In accordance with regulations for the ETSMS of 2018, TRA wishes to inform all licensed producers, importers, distributors and retailers of the excisable products that the third phase of ETSMS will become effective from November 1, this year,” Dr Mhede announced in the statement.
The first phase of ETSMS was introduced in January last year for products such as cigarettes, wines, spirits, beers and other alcoholic beverages.
The second phase was introduced in August last year for carbonated soft drinks save for fruit and vegetable juices.
“The enforcement of Section 5(1)(a) of the Tanzania Revenue Act (Cap 399 R.E 2019) requires fruit and vegetable juices, bottled water as well as CDs, VCDs, DVDs and recorded cassettes which are either produced locally or imported to be stamped with digital stamps,” part of the statement reads.
However, TRA gave three-month amnesty for the mentioned products which have been produced or imported and in warehouses to be sold in the market until January 31, next year.
“As such, all producers and importers are required to inform TRA in writing by filling forms in our regional offices and on our website, the stock of products not stamped with ETSMS in their warehouses before the enforcement of the third phase.”
“Stakeholders are also required to submit details of their brands and the amount of digital stamps they will require for the next year that they can be registered in the ETSMS,” Dr Mhede stressed.
Digital stamps have been instrumental worldwide in curtailing tax cheating through the declaration of production and imports.
The system has as well been touted for curbing the manufacturing and importation of counterfeit products.
Latest TRA figures show that the introduction of the system has played a crucial role in boosting excise duty and value added tax (VAT) for products subjected to excise duty.
A Swiss firm, SICPA was awarded the tender by TRA to provide software and hardware for the system.
