Dar es Salaam. Days are numbered for availability of counterfeit products in the market, as the Tanzania Revenue Authority (TRA) prepares to roll out the remaining phases of the Electronic Tax Stamps (ETS) system.
The first phase of the system covered wines, spirits and cigarettes starting last January. The system was fully rolled out for all alcoholic drinks, cigarettes and bottled water on June 15. The government embarked on Phase Two of ETS on August 1, 2019.
The TRA commissioner general, Dr Edwin Mhede, announced through a newspaper advertisement recently that, in line with Regulation 29 of the 2018 ETS legislation, the second phase of the project would be rolled out on sweetened or flavoured waters and other non-alcoholic beverages – with the exclusion of vegetable juices, which are under tariff heading 20.09, according to the tariff classifications.
For his part, the TRA Taxpayer Education director, Mr Richard Kayombo, said at the weekend that the exercise was going hand in hand with a system which allows companies and individuals to verify the authenticity of tax stamps on various products by using their smartphones. The verification can also be conducted using barcodes.
“Counterfeits are a challenge to members of the business community and to the government alike. We lose revenues through counterfeits and this is one of the benefits that will come with the ETS project,” he said.
He was speaking on the sidelines of a breakfast meeting organised by the Confederation for Tanzania Industries (CTI).
“Through the barcode and the App which will be launched soon, consumers will be able to know the authenticity of the tax stamps via mobile phones,” he said.
During the meeting, members of the manufacturing sector lamented the availability of counterfeit goods in the market which, they said, is discouraging competition. In that regard, they demanding immediate solution.
Commenting on the matter, the minister for Industry and Trade, Mr Innocent Bashungwa, said the war on counterfeit ought to be fought by one and all, including umbrella bodies.
The ETS system is meant to replace the hitherto paper-based tax stamps that were initially attached to cigarettes, wines and spirits. The old system was prone to cheating by taxpayers through under declaration, among other malpractices.

Source: The Citizen

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