Electronic tax stamps win the honors of the deputies

Dodoma The Parliamentary Budget Committee expressed satisfaction with the government's determination to increase government revenue through the use of Electronic Revenue Stamps (ETS).

The approvals come at a time when data from the Tanzania Revenue Authority (TRA) shows that excise duties have increased in recent months, mainly for products on which the ETS system has been deployed.

A Swiss company, SICPA, won the call for tenders and then signed a contract with TRA for the supply and installation of gadgets, as well as for the supply of software and support material for the ETS management system.

The first phase of the ETS deployment program took place on January 15 of this year, when the devices were installed in 19 companies producing alcoholic beverages, namely wines and spirits.

The second phase – installing the devices in soft drink and bottled water plants – was to be launched this month (June 2019).

The TRA data show that, shortly after the installation of the devices, excise duties on products manufactured under the scheme trading systems increased from Shr 24 billion in January to Sh $ 28 billion in April of this year. year.

Debating the budget of 33.1 billion shillings for the 2019/209 parliamentary exercise yesterday, the chairman of the parliamentary budget committee, George Simbachawene (Kibakwe-CCM), said the commission was generally satisfied of the increase in tax revenue use of the ETS during the 2018/19 fiscal year.

"The committee is satisfied with the increase in revenue generated by the use of the ETS, and the government is currently attacking the challenges of the existing system," he said.

Finance Minister Philip Mpango announced the introduction of the ETS when he presented to Parliament the budget proposals for the 2018-2019 fiscal year in Parliament last June. He added that the ETS system would allow the government to use modern technologies to capture production data in a timely manner (in real time) at the manufacturer's premises.

The measure, he said, was also aimed at limiting revenue losses and allowing the determination of the amount of taxes to be paid in advance, namely the excise duties, the tax on value added (VAT) and income taxes.

Last year, the Parliamentary Budget Committee welcomed the ETS program. Mrs. Hawa Ghasia, then president, and a number of other MPs claimed that the system would increase the production costs of producers of water, cigarettes, soft drinks, spirits and beer – among other products.

In general, the Parliamentary Budget Committee is satisfied with the fact that the government has amended 17 legislations in fiscal year 2018-2019, which has resulted in increased revenues.

The amendments, said Mr Simbachawene, have also broadened the tax base and contributed to a more efficient administration of taxes, thereby stimulating the creation of a larger number of industries.