Combating Counterfeiting Through Electronic Tax Stamps

In an effort to increase revenue collection, the Tanzanian Government has in recent years emphasised the use of technology to strengthen tax administration and compliance. Recently, part of those efforts has involved the introduction of the Electronic Tax Stamps Regulations, 2018 (the Regulations).  These require the use and application of Electronic Tax Stamps (ETS) on excisable goods.

The Regulations define an ETS as an adhesive label that uses advanced digital coding technology and is printed or affixed directly on the product packaging of excisable goods. 

The purpose of the ETS is to help stamp out counterfeiting and tax irregularities such as under declaration of taxes. The ETS does this by facilitating the tracking, monitoring and authentication of stamps and excisable goods along the supply chain, so that all excisable goods can be properly accounted for and taxed accordingly.