Application of Electronic Tax Stamps (ETS)
The use of Electronic Tax Stamps (ETS) for excisable goods was introduced to replace the physical paper stamps that were heavily linked to incidents of tax evasion and counterfeiting. This is one of the Government’s moves geared towards improving tax administration in the country. Introduction of ETS will enable the Government to address longstanding challenges in administration of tax in excisable goods. ETS provides advantages to the Government, Manufacturers/Importers and Consumers through the following:
i). Safeguard Government Revenue by deterring counterfeiting
ii). To protect consumers as it enables authentication of tax stamps using mobile phones
iii). To create a tax compliance mechanism covering all traders in the segment to enhance fair competition
iv). Enable tracking and tracing of goods right from the production lines and customs entry points to the final points of sale
v). enabling accounting for the production of excisable goods manufactured or imported;

Goods for which ETS apply
ETS use is applicable for selected excisable goods and the list of such goods may be changed from time to time to improve administration. Currently, ETS apply for the following goods manufactured or imported into the United Republic of Tanzania:
i). Wine and spirits
ii). Mineral and aerated water
iii). Cigarettes
iv). Film and music products
v). juices
vi). Beverages
vii). Beer
viii). Liqueurs and cordials
ix). Perfumed products
x). Petroleum jelly
xi). Lubricants
xii). Disc and Tapes
xiii). Smart Cards

Note:
For administrative reasons, the effective date use of ETS by manufacturers and importers is rolled over on phases. The effective date for first phase was 15th January, 2019 where it included Cigarettes, Wines, Spirits, Beer and other alcoholic beverages. The effective date for second phase of ETS use was 15th August, 2019 and it includes sweetened or flavored water and other non-alcoholic beverages.

 

Registration and licensing of manufacturers and importers 

Accounting of electronic tax stamps