The Tanzania Revenue Authority (TRA) in the Kagera Tax Region has conducted a major operation to combat tax evasion through the unregistered production of spirits in 100ml, 125ml, and 200ml quantities without proper registration, licensing, and the affixation of Electronic Tax Stamps (ETS). Approximately 25,433 bottles were seized in February 2025.

The operation was carried out by the Kagera Regional Office under the leadership of Regional Manager Mr. Castro John, in collaboration with the Karagwe District Manager, Mr. William Mneney. As a result of this operation, the following tax evasion suspects have been arraigned at the Resident Magistrate Court of Bukoba, March 24, 2025, on charges of violating the Excise Duty Act: 1. Mwesiga Reopard Rupia 2. Nelius Kaizelege Mwami 3. Julieth Ishengoma Kisheni and Mlokozi Egibert Emely. This comes after TRA called all businesses and traders in the country to urgently comply with the tax administration and Electronic Tax Stamps (ETS) system. 

The use of counterfeit stamps leads to the illicit trade of products which can harm consumers’ health, create unfair business competition and a loss of tax revenue that could have been otherwise invested in social services, infrastructure, schools, or public health programs. For example, in Tanzania, illicit alcohol trade is a significant and persistent problem depriving the Government of an estimated TZS 1.2 trillion[1] in uncollected excise duty annually. This is a very serious offense for which TRA invests considerable resources to identify fakes and convict fraudsters.

While the Tanzanian Government recognizes the efforts of Tanzanian taxpayers and supports institutions as well as individuals who have enabled TRA to collect taxes more easily, it is reaffirming its aim to foster a more competitive business environment in the country as well as to fight fraud and condemn culprits. This can be achieved using a performing tax administration system optimizing the time of its enforcement staff through market surveillance, powered by advanced technology.

The Tanzanian Government has implemented measures to combat illicit trade such as the setup of effective governmental enforcement teams and field inspectors, who conduct audits from production up to retail with special field devices to verify whether products are stamped or marked (TRA very recently hired 1,000 new staff members to specifically address illicit trade and smuggling of domestically produced and imported goods in the Tanzanian territory as well as at its borders),  the deployment of ETS since 2019 to monitor excisable products from production and import to retail sale, and the implementation of the Hakiki App for consumers to verify the authenticity and quality of their purchase.

ETS: A robust law enforcement measure

Electronic Tax Stamps (ETS) feature an enhanced tax stamp combining both material and digital security features, as opposed to digital-only solutions that are easily copied or circumvented by hackers, or simple paper fiscal stamps that are too easy to reproduce. Enhanced tax stamps combine several material security features, such as the ones of banknotes, to identify even the most vicious copies, improve digital functions and provide comprehensive business intelligence to support government law enforcement forces. 

Any seizure of trafficked or smuggled excisable goods in Tanzania is made possible thanks to ETS and the enforcement actions set by the authorities. The ETS technology enables the constitution of forensic evidence required to convict fraudsters, thanks to its material and digital security features - that are corroborative evidence of the illicit trade activity - providing robust evidence for enforcement officers to seize products and arrest the culprits, and for judges to punish traffickers.

At a time when trafficking is prevalent throughout the world, and is intensifying with unbridled globalisation, the most solid and sovereign means of control are essential to States and citizens, particularly in multinational areas such as the East Africa Community, and Tanzania. Indeed, facilitating trade implies securing it so that no loophole is taken advantage of. 

As such, ETS type systems are widely recommended by renowned international institutions such as the World Health Organization and the International Monetary Fund for the improvement of domestic revenue, to fight against illicit trade, combat smuggling, and reduce tax evasion. Through tax and law enforcement measures, and the use of technology through ETS, TRA is reaffirming its commitment to transparency and tax compliance in the country as well as to support businesses, ensuring a level playing field for all, so that the legitimate economy succeeds.