The Tanzania Revenue Authority (TRA) is set to expand the Electronic Tax Stamp (ETS) system to additional manufacturing sectors, following notable success in its current implementation across the cigarette, alcohol, bottled water, and soft drinks industries.

According to Abihudi Tweve, Project Manager for the ETS at TRA, the next phase of implementation will target key industries including cement, sugar, cooking oil, and textiles. Speaking during a public awareness seminar held for media practitioners and editors yesterday, Tweve highlighted that preparations are already underway to roll out ETS in the sugar sector, with further expansion to cooking oil and garments anticipated shortly thereafter.

“The ETS system has proven to be a reliable tool in enhancing tax compliance, curbing tax evasion, and boosting government revenue,” Tweve stated. “We are currently in the process of designing ETS for sugar, which will pave the way for inclusion of other sectors such as cooking oil and garments.”

Since its initial rollout in 2019, the ETS initiative has seen a significant increase in manufacturer registrations. From just 58 companies in 2019, the number has surged to over 600 manufacturers to date—an impressive increase of more than 900 percent. This expansion has directly contributed to improved tax collections and increased transparency in the excise goods sector.

Addressing concerns raised by some manufacturers over the cost implications of implementing ETS, Tweve noted that TRA has taken deliberate steps to alleviate the financial burden. “In 2019, the cost for 1,000 ETS stamps stood at US$20, equivalent to around 51,000/-. 

“Today, this cost has dropped to 42,000/-, thanks to a fixed contract exchange rate and payments being made in the local currency,” he explained.

TRA has also addressed complaints over delayed refunds for damaged or unusable stamps. Tweve clarified that the refund process is governed by legal provisions, which require affected manufacturers or importers to report such incidents to the third-party ETS service provider promptly. Refunds are processed based on verified claims supported by conclusive evidence.

In terms of regional cost competitiveness, Tanzania offers the most affordable ETS solution in East Africa. 

Tweve pointed out that cost reduction remains an ongoing process. “During the last financial year alone, the average cost of ETS stamps was cut by 30 percent,” he revealed.

Tausi Mbowe, a representative from the Tanzania Editors Forum (TEF), underscored the importance of continued collaboration between TRA and the media to enhance public understanding of the ETS system. 

Such partnerships are crucial as Tanzania moves towards financial self-sufficiency and reduces dependence on foreign aid.

Also speaking at the event, TRA’s Taxpayer Education Manager, Paul Walalaze, outlined other initiatives being undertaken to improve tax compliance. He mentioned efforts to curb tax evasion and the dumping of goods, particularly in fuel and transit goods, through the strengthening of the Transit Management Unit and the Electronic Cargo Tracking System (ECTS).

As Tanzania intensifies efforts to broaden its tax base and promote fair business practices, the expansion of ETS is expected to play a pivotal role in driving revenue growth while ensuring transparency across a wider range of products.