Following our update on 20 April 2019 wherein it stated that 30 April 2019 was the deadline for selling and holding stocks of excisable products affixed with non-electronic tax stamps and/or without tax stamps, such products being; cigarettes; wines; spirits; beer; and all kinds of alcoholic products produced locally or imported, the deadline has been extended to 15 May 2019. The Tanzania Revenue Authority (the “TRA”) on 01 May 2019 issued a notice that provides guidance/procedures to be followed to ensure the above mentioned products are stamped/re-stamped with electronic tax stamps (“ETS”) and that the effective date for selling and holding stocks of such products affixed with paper tax stamps and/or without tax stamps has been moved to 15 May 2019.
The Notice states that the respective manufacturers, distributors, suppliers, importers and any other taxpayer to which/whom ETS is required to be used on its/their products are required to observe the following:
- They must liaise with the TRA Regional and District Managers in their areas to verify and declare the stocks of products that require stamping/re-stamping with ETS, in order to obtain appropriate guidance from the TRA on the phasing out and affixing/re-affixing of ETS on the products affixed with paper tax stamps and/or without tax stamps. Please note that this exercise is required to be completed by 15 May 2019 and after that date, all undeclared stock will be considered illegal and will be removed from the market; and we have been made to understand this will be without compensation;
- The Regional and District Managers of the TRA will designate and communicate appropriate locations for stock-taking and affixing of the ETS of the stocks of products verified and requiring to be stamped/re-stamped with ETS;
- All imported beers shall be affixed with ETS. However, locally produced beers are exempted from being affixed with ETS as local manufacturers of beer are required to affix ETS at the points of production/brewing;
- The verified stock will be permitted to remain in the market up to 30 June 2019, whereafter no excisable products which require the affixing of ETS shall be displayed for sale, sold or distributed;
- The Notice stipulates that detailed guidance on the acquisition and affixation of the ETS will be communicated through the respective Regional and District Managers of the TRA before 15 May 2019.
Should further information be required please visit the nearest TRA office or contact them through their toll-free call centre numbers or by email:
- Toll Free Number: 0800 750075;
- Toll Free Number: 0800 780078;
- WhatsApp Number: 0744233333;
- Email: services@tra.go.tz.
If you have any questions regarding this legal update, please contact Amish Shah by email on aks@arslaw.co.tz.