LIQUOR producers have commended the government decision to introduce electronic tax stamps to replace the current ones on paper, saying the system would help curb illegal production of the popular liquid.

The move would also reduce complaints of presence of fake products in the market. Tabling his budget estimates for FY 2018/19 in parliament last Thursday, the Minister for Finance and Planning, Dr Philip Mpango said the new electronic stamps would take effect beginning September this year.
“Honourable Speaker, I propose to introduce the Electronic Tax Stamp to replace the Paper Tax Stamp starting September 1, 2018.
The new tax stamp system will enable the Government to use a modern technology to obtain production data on time (real time) from the manufacturers,” he said
. He added that the government also intends to curb revenue leakages and make it possible to determine in advance the amount of taxes that will be paid through Excise Duty, VAT and Income Taxes.
According to the minister, the system would address the challenges associated with the use of fake paper stamps which could lead to health problems and revenue losses. Nyati Spiritz Limited Chief Executive Officer Rupa Suchak commended the government for “the positive move”, arguing it (the government) would now collect more revenue from the genuine liquor producers and get rid of illegal products. “… it’s good that the government has introduced electronic stamps in a bid to collect billions of shillings from tax evaders,” she said, adding that the sector had since been polluted by cheap, illicit products, some of which use fake excise duty stamps.
The parliamentary Committee on Industry, Trade and Environment has also hailed the move, recommending that the government should act to curb fake excise duty stickers on liquor across the country.
Presenting the committee’s views on the budget estimates presented by the Ministry of Industry, Trade and Investment, the committee chairperson, Suleiman Sadiq said that illicit liquor with fake Tanzania Revenua Authority (TRA) stickers were the cause of a long-term public outcry.
He also noted that some liquor producers who issued false information on their products were denying the government of “a lot of money in revenue.
” Another liquor manufacturer who declined to be named said they had been asking the government to act on the matter to no avail, and that he was “now happy” that the government had decided to take action.
“ … we made it clear that it’s not right for these traders to continue operating in the market this way … in effect indulging in unfair competition for genuine products from traders who support the government’s industrialisation drive,” he said.
He said investors need to understand the government plans on industrialisation and work in a ways that support what the government is campaigning for rather than going against it.
Earlier this year, the Minister for Industries, Trade and Investment, Charles Mwijage said the government was aware of the problem and was working on it. He also called on fellow law-makers to help reveal errant factories