TRA designs digital tool to verify e-stamp

15Feb 2022
The Guardian
TRA designs digital tool to verify e-stamp

TANZANIA Revenue Authority (TRA) has come up with an initiative deliberately designed to help Tanzanian consumers to verify the authenticity of electronic tax stamps (ETS) inserted on various products.

TRA Commissioner General, Mr Alphayo Kidata.

Through initiative, the TRA has launched an application know as Hakiki Stempu (Verify the Stamp) that consumers will use to authenticate the genuineness of a product.

“TRA calls upon consumers and the general public to download the Hakiki Stempu App on their smartphones for free. It [the stamp] will help them to know which product is fit for their consumption and which one is not…,” the TRA Commissioner General, Mr Alphayo Kidata, said here yesterday.

He said the ETS authenticity exercise will also help the government to collect its right amount of tax from manufacturers and traders.

“The money collected will help the government in the implementation of a number of development projects and in the delivery of social services in the country,” said Mr Kidata.

Mr Kidata urged manufacturers and importers of various products to use the ETS honestly, saying the system had a lot of benefits to their business. The benefits include protecting their products against counterfeits in the market and also in coming up with a just tax assessment.

Available data show that excise duty collections have risen 60 percent if the three years prior to the rollout of ETS’ on beer, wines and spirits is compared to an almost similar period after the rollout.

TRA collected Sh297.2 billion as excise duty on beer, wine and spirits (both locally-produced and imported ones) during the three years before January 15, 2019 but from that time to June 2021, the amount rose to Sh476.7 billion, available data shows.

There had been double-digits excise duty growth rates from all the products on which ETS’ have been stamped.

The government announced plans to adopt the ETS system in June 2018 and the first phase of the project was conducted on January 15, 2019 whereby stamps were installed on companies that produce beer, wine and spirits.

Phase two of the project was rolled out on August 1, 2019 when ETS’ were stamped on sweetened flavored water and other non-alcoholic beverages, like energy and malt drinks and soda.

The third phase, which involved enrolling electronic stamps on fruit juices (including grape must), vegetable juices (under Heading 20.09), and bottled drinking water, was conducted November 1, 2020.