Minister hails ETS role on counterfeit reduction

16Sep 2019
The Guardian Reporter
Dar es Salaam
The Guardian
Minister hails ETS role on counterfeit reduction

DEPUTY Minister for Industry and Trade, Stella Manyanya, has said the use of Electronic Tax Stamp (ETS) management system for excisable products has had a key impact in reducing counterfeit products in the local market.

DEPUTY Minister for Industry and Trade, Stella Manyanya.

The Tanzania Revenue Authority (TRA) launched the second phase of ETS management system on August 1, this year, for bottled water, carbonated drinks and other nonalcoholic drinks.

In an interview recently Manyanya said that before the use of the electronic stamps it was a challenging task to trace counterfeits since some dishonest traders and importers were using forged physical stamps for the goods.

“Tanzania has been fighting hard to protect its products from fake products, curbing such goods can only be possible through coordination of government institutions and other stakeholders,” she explained.

Execution of the second phase of ETS followed successful implementation of the first phase which kicked-off on January 15, 2019, which was applied to cigarettes, wines, beers, spirits and all other kinds of alcoholic drinks which are either manufactured in Tanzania or imported.

The government of Tanzania through TRA started the first phase of ETS system on wines, spirits and cigarettes in January, this year. The system was fully rolled out for all alcoholic drinks, cigarettes and bottled water on June 15, this year.

A Swiss firm, Société Industrielle et Commerciale de ProduitsAlimentaires (SICPA) won the tender and subsequently signed a contract with TRA for supply, installation and provision of supporting software and hardware for ETS management system.

ETS is meant to replace the hitherto paper-based tax stamps initially attached to cigarettes, wines and spirits. The old system was prone to cheating of taxes through under declaration, among other malpractices.

The ETS management system automatically stamps the products at the end of the production line and submits the count in real time through a system to TRA.