Electronic tax stamp on cement, sugar in offing

DAR ES SALAAM: THE Tanzania Revenue Authority (TRA) is in the final stages of introducing electronic tax stamps (ETS) for sugar and cement to combat tax evasion and counterfeiting.

The ETS will replace the traditional paper-based tax stamps currently used for cigarettes, wines, and spirits, which are susceptible to tax fraud through under declaration and other malpractices.

Speaking at the 48th Dar es Salaam International Trade Fair (DITF) yesterday, TRA’s Director of Internal Affairs, Ndositwe Haonga, emphasized that this initiative aims to ensure consumers purchase genuine products from manufacturers.

The introduction of digital stamps follows the successful implementation for excisable goods such as cigarettes, beers, wines, spirits, and bottled water, which began on January 15 last year.

Mr. Haonga highlighted that implementing electronic tax stamps on cement and sugar will significantly impact revenue collection due to their substantial production volumes and associated revenues.

Senior Tax Management Officer at TRA, Mr. Patric Massawe, reiterated that ETS will replace the old, easily manipulated paperbased tax stamps attached to cigarettes, wines, and spirits, which were prone to under-declaration.

Also read:http://Tanzania tax collections hit 27.64tri/-

Recently, Mr. Oran Njeza, Chairperson of the Parliamentary Budget Committee, suggested extending digital stamps to other products like cement and sugar.

“Arrangements are underway for a meeting between the committee and TRA to propose modalities for applying digital stamps to these and other products to enhance revenue collection,” Mr. Njeza said in an interview.

“Data shows that electronic stamps have significantly increased government tax revenues and should be extended to curb tax evasion and under-declaration.”

Mr. Njeza also proposed that the government, through TRA, expand the application of electronic tax stamps to broaden the tax base and boost revenue collection for the Treasury

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