Digital tax stamps are necessary for informal sector – Manufacturers

Manufacturers have asked the government to use the digital tracking solution (Digital tax stamps) to collect revenue from informal businesses, saying that this will increase the country’s tax base.

The outgoing country director for Nile Breweries, David Valencia says the digital tax is not necessary for formal businesses because the more businesses become formalized the more revenue is collected.

He made the remarks while welcoming the new country director for the brewery.

David Valencia has been replaced by Adu Rando who has been serving as the company’s Route to Market Director in Greater Africa and was based in Tanzania.

He also asked the government to continue controlling the raising inflation, which in turn will ensure that businesses are not affected.

Digital Tax stamp is another solution that mainly seeks to address challenges of illicit trade, counterfeit products, and unfair competition on the market. It is used to track and trace excisable goods. With tax digitization, there is no need to manually follow up and calculate taxes vis-à-vis sales.

Written by Moses Ndhaye