TANZANIA Revenue Authority (TRA) has assured producers of beverage and cigarettes that the electronic tax stamps (ETS), management system will not increase production costs on their part.
The TRA’s Deputy Commissioner General, Mr Msafiri Ndimbo, explained that the tax collector will cater for the costs of installing the system at production lines. “
Respective manufacturers will only foot charges for the stamps, this is also minimal since they will be produced directly by the installed system”, the official explained during the 43rd Dar es Salaam International Trade Fair (DITF).
Mr Ndimbo made the explanation in response to concerns by some manufacturers who feared that implementation of the system will increase production costs.
He went on to assure manufacturers that the ETS management system will curb fake products in the domestic market since it will be easy to trace and detect such goods.
“All companies engaged in production of beers, wines, spirits and cigarettes are required to have the system at their plants or risk legal actions,” he stressed.
Mr Ndimbo explained further that the system has not encountered any challenge since it was introduced in the first phase mid-January, this year. Implementation of the second phase now awaits endorsement of the Commissioner General of TRA.
This will cover all producers of alcoholic drinks and cigarettes. “We have as well given more time to small and medium scale producers to upgrade their production lines, to be able to accommodate the new system”, he explained.
Finance and Planning Minister, Philip Mpango announced in the National Assembly last year to effect the use of ETS as a replacement of physical paper stamps, which are prone to tax evasion by some unscrupulous manufacturers.
After the announcement, TRA contracted a Swiss firm Société Industrielle et Commerciale de Produits Alimentaires (SICPA), to install required software and hardware for the system.
The first phase, which commenced in June 15, this year, was meant for beers and cigarettes while the second phase will be extended to other products namely wines, spirits and carbonated soft drinks.