Electronic tax

Tanzanian Parliament wants to extend use of electronic tax stamps to cement, edible oil and iron sheets

By The Citizen Reporter

Dar es Salaam. Parliament on Monday called on the government to expand the deployment of electronic fiscal stamps (ETS) to more products with the deliberate aim of reducing revenue losses due to the exercise of rights.

Debating the government budget of 36 trillion shillings for the 2021/22 fiscal year, the chairman of the parliamentary budget committee, Mr Sillo Baran, said the ETS system was good because it allowed the government to use the modern technology to obtain timely (real-time) production data from manufacturers.

The move helps the government limit revenue leakage – and also determine in advance the amount of taxes to be paid in the form of excise duty, value added tax and income tax.

“… It helps the government identify genuine products and fake ones. It removes the possibility of cheating [on the right amount of tax to be paid] by dishonest businessmen… ”he said, noting, however, that the only challenge with the system was the high costs associated with stamps.

He said that with the benefits, the government was advising the government to see a possibility of extending the ETS to other products like cement, edible oil and sheet metal.

“This committee also advises the government to sit down with the contractor and find a way to revise the rates. The government must also put in place a strategy that will allow the system to remain in use when the current contract with the contractor expires, ”he said.

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In Tanzania, the government announced its intention to adopt the Electronic Tax Stamp (ETS) system in June 2018 and the first phase was conducted on January 15, 2019, during which stamps were installed on 19 companies that produce alcohol, wine and spirits.

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

The third phase, which involved the registration of electronic stamps on fruit juices (including grape must), vegetable juices (under heading 20.09), bottled drinking water, was carried out on November 1 2020.