TRA registers increase in collection of VAT in 2019/20 1st quater

12Nov 2019
Henry Mwangonde
The Guardian
TRA registers increase in collection of VAT in 2019/20 1st quater

The Tanzania Revenue Authority has recorded an increase of exercise collection and Value Added Tax (VAT) from various domestically produced products in the first quarter of 2019/20 following the rolling out the Electronic Tax Stamps (ETS) phase two.

TRA Director of Tax Payer Services and Education, Richard Kayombo.

According to TRA’s Commissioner for Domestic Revenue Abdul Mapembe there has been a 35.3percent increase in VAT and exercise collections from spirits and wines and 5.6percent increase in Cigarettes in 2019/20 quarter compared to the same period last year.

Mapembe said TRA collected 25.8bn/- from spirits and wines that is produced locally in the first quarter of 2018/19 but, the case changed in the first quarter of this year.

The collections from Cigarettes also increased to 5.6percent in 2019/20 compared to the same period last year.

He further elaborated that on Cigarettes TRA collected 56.7bn/- as VAT from July to September, 2019 compared to 53.7bn/- collected during the same period last year.

For soft drinks TRA collected 16.155bn- as VAT from August to September 2018 but, it increased to 19.05bn/- between August and September.

The government of Tanzania through Tanzania Revenue Authority 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.

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.

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.

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