Tanzania rolls out electronic tax stamps on all soft drinks, bottled water

Dar es Salaam. After months of preparations, Electronic Tax Stamps (ETS) will now be installed on fruit or vegetable juices and bottled water, Tanzania’s Revenue Authority (TRA) said on Thursday.

Tanzania Revenue Authority (TRA) conducted the first phase of the ETS rollout on January 15, 2019 whereby electronic stamps were installed on 19 companies that produce alcohol, wine and spirits.

The second phase, which involved soft and carbonated drinks and bottled water, was rolled out on August 1 last year.

However, TRA late last year said that with huge number of manufacturers involved in the manufacturing of soft and carbonated drinks as well as bottled water, it was its (TRA’s) view that some of them would require training to understand the pros and cones of electronic stamps.

In what explains that the training and planning processes have been completed and that the ETS was ready for rollout, TRA said through a media statement on Thursday, October 22, 2020 that electronic stamps on fruit or vegetable juices, bottled water, as well as films and music products, will commence on November 1, 2020.

TRA Commissioner, Edwin Mhede said in a statement that the decision follows the completion and application of the referred system in phases 1 and II to such products that included cigarettes, wines, spirits, beer and all kinds of alcoholic beverages on January 15, 2019 and followed by sweetened flavored water and other non alcoholic
beverages, like energy and malt drinks and soda on August 1, last year respectively.
“Against the above background and cognizant to the spirit of the need to effectively implement the mandate provided for in section 5(1)(a) of Tanzania Revenue Authority Act CAP339 R.E2019 all respective stakeholders and the public are required to take note of the specified products as mentioned,” he said.
He said that the products, whether manufactured locally or imported into the
country, will, from November 1 this year, be affixed with ETS in accordance with the regulations.
However, he noted that since the products were not affixed with tax stamps prior to the introduction of ETS, therefore such products which are still at the manufacturers’ or importers’ warehouses and in the markets be granted a grace period of up to three months from November 1, 2020 to January 31, 2020 to either be traded or phased out.

He called upon all traders and other concerned stakeholders to submit full details of their brands forecasts of quantities of ETS they intend to use before the effective date.