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Manufacturers appeal for reduction in ETS charges

Manufacturers appeal for reduction in ETS charges

MANUFACTURERS on Thursday lauded the implementation of their recommendation to pay charges of Electronic Tax Stamp (ETS) in local currency instead of US dollars, but appealed to the government to reduce charges for the sake of local industries’ competitiveness.

Under their umbrella, Confederation of Tanzania Industries (CTI), the industrialists yesterday said the ETS fees are still high and have formally written to the Commissioner General of the Tanzania Revenue Authority (TRA) over their concerns.

Tanzania Revenue Authority (TRA) recently announced new charges but CTI says the reduction of an average of 4 per cent is still very small compared to previous ones.

According to the taxman the newly announced charges took effect on Monday this week.

“We appreciate the fact that ETS now is paid in Tanzanian Shillings, but we are not encouraged by the fact that there has been an insignificant change in the rates,” commented Mr Leodegar Tenga, Executive Director of the CTI, during a press conference in Dar es Salaam.

Mr Tenga said they initially recommended reduction of 75 per cent in a bid to avoid increase in operational costs of industries that could affect competitiveness. Mr Tenga said the private sector was supporting the use of the ETS but called for affordable charges agreeable by both the government and the manufacturers.

“Manufacturers have categorically reiterated the fact that they support the government’s initiative to implement the ETS since it fosters a fair and competitive business environment that stimulates economic growth. “CTI and its members support the use of ETS on the grounds that it ensures transparency in business operations and combats under-declaration and proliferation of illicit goods in the market,” he stated.

He further argued that the charges not only increased operational cost to the businesses but also had negative impact on the sector’s development and the economy in general.

The CTI earlier had engagements with the TRA and submitted alternative ETS solutions which could significantly reduce current costs.

The CTI Executive Director mentioned five recommendations that the manufacturers thought could be appropriate, including the review of the ETS costs by making a reduction of 75 per cent on the prevailing ETS rates and representation of manufacturers by the CTI in the review process, having in place concrete plans to localize the operations of ETS in order to avoid externalization of funds since currently the system is managed by foreign company.

“This is because the ETS charges are paid to the external third-party vendor and do not go to the govern

Institutions urged to have monitoring, evaluation policy  

PUBLIC and private sector institutions ...

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Author: BERNARD LUGONGO

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