📌How ETS, fuel marking and the use of data are transforming revenue verification in Tanzania
Tanzania’s revenue journey in 2025 continues to reflect a strong commitment to expanding the tax base, with increased emphasis on the use of digital systems to protect, monitor and enhance the efficiency of national revenue.
In the first quarter of the 2025/2026 financial year, the Tanzania Revenue Authority (TRA) collected TZS 8.97 trillion—exceeding its target by more than 6 percent and recording a 15 percent increase compared to the same period in 2024.
These results signal a clear trend: the more intelligent and technology-driven the tax system becomes, the stronger the national treasury grows.
This year, technology-led solutions—including Electronic Tax Stamps (ETS) and the Fuel Marking Programme—have proven that digital transformation is not a theory, but a practical and effective tool for strengthening revenue verification.
Transforming tax systems into intelligent systems
The ETS system has evolved from being merely a compliance and enforcement tool into a real-time intelligence engine. By replacing paper tax stamps with secure, traceable digital stamps, regulators are now able to track excisable goods from the factory to the retail outlet.
In the 2024/2025 financial year, TRA collected TZS 32.26 trillion—equivalent to 103 percent of its target—representing a 16.7 percent increase compared to the previous year. The Authority has openly acknowledged that technology has enhanced tax compliance and strengthened the integrity of excise revenue.
The impact of ETS has been most evident in excise duty and VAT collections on domestically manufactured goods, which reached record highs in 2024/2025. Since the introduction of ETS in 2016, excise duty collections on stamped products have increased by 94.4 percent—clear evidence of technology’s power to close revenue leakage gaps.
Safeguarding fuel integrity: protecting revenue and ensuring transparency
Fuel marking is a critical pillar in protecting one of the most sensitive revenue sources—the petroleum sector—against adulteration, illicit trade and tax leakage. Reports from EWURA show compliance levels exceeding 96 percent, with billions of litres inspected and verified through advanced invisible markers. These markers enable instant checks and fraud detection, thereby protecting consumers while safeguarding government revenue.
In addition, mobile laboratories provide rapid on-site verification within five minutes and transmit data directly to a central system for intelligent oversight. Beyond detecting fraud, these laboratories assess key quality indicators such as sulphur levels, minerals and particulates, helping to protect engines, reduce air pollution and safeguard industrial investments.
Operational data: the backbone of digital transformation
The true strength of ETS and fuel marking lies not in the stamps or markers themselves, but in the data they generate. Because the marking process is secure, data integrity is fully protected. Every scan, every sample and every verified product contributes to a national intelligence network that identifies gaps such as:
- Depots where fuel markers do not match distributed volumes
- Districts where tax collection systems do not align with legitimate business activity
- Supply chains where products “disappear” between factory and retail outlets
- Areas where counterfeit tax stamps are being used
This year, TRA expanded data-driven audits for excisable goods such as alcohol and tobacco. This approach has enabled audit teams to focus on high-risk operators instead of conducting random inspections—reducing costs and increasing revenue recovery.
Real wins from the field
The Smart Digital Activation system has transformed how manufacturers submit information by simplifying the transmission of serial numbers and reducing errors in ETS declarations—delivering major gains in compliance and efficiency.
Similarly, failures in fuel marking indicators have triggered targeted inspections, with EWURA taking action against non-compliant fuel stations and quickly restoring consumer confidence.
A decline in counterfeit excisable products has been observed as ETS coverage has expanded, protecting legitimate manufacturers and preserving brand integrity.
Digitally generated market data powered by AI has strengthened TRA’s ability to predict non-compliance risks, optimise audit resources and enhance tax assessment analysis.
In addition, the TRA Verification App has empowered consumers to authenticate excisable products, improving awareness, protection and informed purchasing decisions.
Each example confirms one fundamental truth: digital systems generate evidence—and evidence is the foundation of effective law enforcement.
A fair market, a stronger nation
By strengthening compliance, these systems protect honest producers, ensure fair competition in the formal market and build public confidence in regulated products. Most importantly, they safeguard the revenue required to deliver national priorities—health, education, infrastructure and socio-economic development.
Conclusion
Digital transformation in revenue verification is not a future aspiration; it is a present-day opportunity for Tanzania. Systems such as ETS and fuel marking have demonstrated that when technology, transparency and data converge, revenue increases, illicit trade declines and the national system becomes more resilient.
This year has reinforced one critical message: digital tools do not merely track revenue—they unlock and protect its full potential for the nation’s future.
