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
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