AI transforms TRA’s measures to curb falsified electronic stamps

DAR ES SALAAM: THE challenge of counterfeit Electronic Tax Stamps (ETS), which was previously undermining revenue collection by the Tanzania Revenue Authority (TRA), is now under control, thanks to the deployment of Artificial Intelligence (AI).

The application of this technology, in place for over a year now, has enabled TRA to conduct digital market surveillance and identify areas at risk of ETS tampering, including code duplication.

“We appreciate this technology, which has replaced the traditional methods of tracking fake stamps. With AI, we can now trace the business owner using counterfeit stamps in real-time and take immediate action,” said Mr Abyud Tweve, Project Manager for TRA’s ETS and Hakiki App.

Mr Tweve made the remarks in Dar es Salaam on Wednesday while presenting a report on the ETS to editors from various media houses.

“The AI system allows us to detect duplicated ETS codes. When a code is scanned in different geographical locations, we receive a notification. This has simplified our tracking process and significantly reduced response time,” he added.

He noted that since the adoption of AI technology in November 2023, many fake stamps have been detected, resulting in savings of billions of shillings.

Furthermore, the authority has increased its inspection volume to 1 million scans in 2024—up from 250,000 scans the previous year.

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“This growth has also expanded our inspection reach to both urban and rural areas across the country,” Mr Tweve said.

Awareness campaigns have played a key role in educating the public and encouraging the use of the Hakiki Stamp (Hakiki Stempu) to verify the authenticity of stamped products before consumption. Since its launch, the system has registered over 600 manufacturers of excisable goods affixed with tax stamps, representing a 900 per cent increase from just 58 manufacturers before the introduction of ETS.

Additionally, the average declared production by manufacturers of goods affixed with ETS has risen by over 300 per cent, from 1bn/- liters in 2019 to 4.4bn/- liters in 2024.

The technology was installed by SICPA Tanzania, a technology company contracted by TRA to implement and manage the ETS since 2019. Providing further details on ETS, Mr Tweve explained that the system began in January 2019 and currently covers products such as spirits, wine, tobacco, alcoholic beverages, carbonated soft drinks, water, juice, multimedia items, and cement.

“We are now considering expanding the scope to include sugar, kitenge fabric, and edible oil,” he said.

While officially opening the meeting, Mr Hoseya Kidesa, Acting Deputy Commissioner for Small Taxpayers in the Domestic Revenue Department, emphasized the importance of public awareness regarding ETS, highlighting the critical role of the media.

“This meeting will enhance the effectiveness of public awareness campaigns around ETS,” Mr Kidesa noted.

Earlier, SICPA Tanzania General Manager Alfred Mapunda explained that the installation of ETS equipment was fully financed by SICPA, meaning neither the government nor producers/ importers had to cover the upfront hardware costs.

Mr Mapunda also noted that SICPA developed the digital platform that integrates with TRA’s databases and provides ongoing technical support and maintenance.