TRA in final stages of rolling out second phase of ETS

03Jul 2019
Henry Mwangonde
Dar es Salaam
The Guardian
TRA in final stages of rolling out second phase of ETS

 THE Tanzania Revenue Authority (TRA) has said that it is in the final stages of rolling out the second phase of Electronic Tax Stamps (ETS) to curb cheating of taxes through under declaration, among other malpractices.

TRA deputy commissioner, Msafiri Ndimbo.

Speaking at the ongoing 43rd Dar es Salaam International Trade Fair (DITF), TRA deputy commissioner, Msafiri Ndimbo said all the required facilities including servers and printers are ready for installation at the respective companies.

Ndimbo said they only waiting for a date to be announced by the commissioner general. He said that initial installation was set for June but the authority’s commissioner general will announce the date anytime soon.

He added that there has been outcry from the public that the new system would increase the cost of production saying installation of the equipment was catered for by TRA.

“The system will help manufacturers do away with counterfeits that were initially forced into the market through shoddy routes”, he said adding that all companies must comply with the system or they will be forced out of business.

The ETS intends to replace the current paper stamps applied worldwide on cigarettes, alcoholic and non-alcoholic beverages, medicinal drugs, playing cards, bottled water, cosmetics, hunting licences, firearms registration and several others.

It has special security features that are difficult to forge thus making it a good promoter of lawful trade, as its discourage influx of counterfeit goods in the market, protect domestic industries from unfair competition and enhances tax compliance by manufacturers as it can tracks industrial production.

The government adopted the Electronic Tax Stamps (ETS) system effective in the 2018/2019 financial year with intents to increase excise duty as charges are done per unit instead of the current charges calculated per produced liters.

The government 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 Produits Alimentaires (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.

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.

Available data indicates that since ETS was implemented during the first phase on tobacco and alcoholic drinks starting January, this year, collection for excise duty on locally produced spirits increased by 22.7 per cent.

TRA indicates in the data that excise duty from the spirits increased from 18.5bn/- between January and March 2018 compared to 22.7bn/- which was recorded between January and March, 2019.

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