Act against fake tax stamps on liquor, residents appeal

Moshi. Residents of Kilimanjaro and Arusha regions are have asked the Tanzania Revenue Authority (TRA) to work with other state organs in investigating fake electronic tax stamps (ETSs) on spirits that are sold in some bars in the two administrative regions.

This comes about after TRA in Kilimanjaro Region reported to have arrested a man - who was identified by only one name: Kimario - in efforts to dismantle the network of individuals who engage in distribution of fake ETSs.

The fake stamps, bearing the TRA emblem, were being stamped on liquor to dupe imbibers and evade taxes on the liquour.

The Kilimanjaro TRA regional manager, Mr Gabriel Mwangosi, said last week that Mr Kimario was arrested in connection with his alleged involvement with a network of individuals distributing fake ETSs.

“He was arrested the previous day while at his home. He would pocket Sh10,000 for every 100 fake stamps he sold to manufacturers. At times, he would grant a Sh2,000 deduction and sell at Sh8,000. This is as good as sabotaging government revenue collection efforts, and the economy at large,” said Mr Mwangosi on Wednesday last week.

During the search at his house, Mr Mwangosi said, the suspect was found in possession of ethanol which is used as an intoxicating ingredient in the making of alcoholic beverages such as beer, wine and distilled spirits.

Residents of the two regions now say TRA should go beyond what it has so far done - and should conduct impromptu investigations at drinking places where spirits are sold.

A systematic working relationship that brings together TRA, the Tanzania Bureau of Standards (TBS), the police force and other state agencies would help to ascertain the extent of the problem - including alleviating the adverse impact on health of imbibers.

“They should conduct their investigations randomly and whenever they find a fake ETS, the one holding it should be compelled to explain where he obtained it. This way, it will be easy to dismantle the network,” said a resident of Shanty Town in Moshi, Kilimanjaro, Mr Chriss Martin.

He said it was not uncommon in Moshi to see different bars have spirits of the same type but with different tastes. This suggests that one of the spirits could most likely be fake.

“It is my view that, in some places, we consume fake spirits which may have some far-reaching ramifications on our kidneys and our eyes,” he said.

A resident of Simanjiro in Arusha Region, Mr Alfred Mollel, shared similar sentiments, noting that recent rise in incidents of authorities impounding fake liquor was a clear indication that the problem does indeed exist - and that it needs concerted efforts to tackle it.

“The problem is that we do not know what actually takes place in those wayward beer halls where fake spirits are sold. This is why the authorities need to work as a team on this,” he said.

The TBS head of Communications, Ms Roida Andusamile, said TBS is always willing, able and ready to work with other government institutions whenever such issues arise.

“We have been working with TRA and with the police force on a number of occasions - mostly along national borders,” she said.

In his final remarks, Mr Mwangosi said the advice was good - and promised to divulge more today (Monday). This is after a lot of work had been done since the taxman started investigating the issue in Kilimanjaro.

The government announced plans to adopt the ETS system in June 2018, and the first phase was implemented on January 15, 2019 whereby ETSs were applied on 19 companies that produce wine and spirituous liquors.

The ETSs stsyem seeks to boost transparency in the collection of excise duty, value-added tax (VAT) and corporate tax from beverages manufacturers.

The ETS system enables the government to use modern technology to obtain production data on a timely basis (real time) from manufacturers.

The move aids the government in curbing revenue leakages - and also to determine in advance the amount of tax payable as excise duty, value-added tax and income tax.