Tax stamps for alcohol
Issued by Traceability Solutions - Nov 14th, 10:00
Fake and counterfeit alcohol poses a serious risk to public health. Reports have indicated that people who have ingested fake alcohol have suffered effects that range from excessive vomiting and headaches to breathing difficulties, blindness, seizures and even death.
This illegal trade is on the rise as the consequences of being caught making fake alcohol are far less than that of making and dealing in illegal drugs.
In addition to the risk to public health, governments are losing tax revenue due to this illicit trade. Even legally produced alcohol is being stolen by organised crime units, whilst being transported and being sold in the black market. This further decreases the profit margins of genuine alcohol manufacturers. Some well-known brands are being counterfeited. Counterfeit alcohol traders take advantage of the easy border entry across Africa and the world.
Tax stamps are becoming more widely used by governments. In 2013 approximately 81 countries worldwide use tax stamps. Governments need to control the illicit trade in alcohol due to the danger that counterfeit alcohol poses to the health of the public. In addition, the tax revenue lost due to the illicit trade in alcohol is massive. There has been some limited and incomplete academic and private sector research for the tax revenue lost due to the illicit trade of alcohol in Southern Africa.
Based on a study done by the SADC they found that for 2009, about 160,000 hectolitres of spirits and about 400,000 hectolitres of wine were estimated by industry as illicit in South Africa (estimated revenue loss of US$ 96 million).
HOW TAX STAMPS WORK?
A tax stamp is more than a small strip of paper sold by a revenue authority to a taxpayer to stick on products or documents to show that excise tax has been paid on them. A tax stamp must conform to a number of strict parameters that render it more complex to be counterfeited. Various products, including medicines, alcoholic beverages, and tobacco, are taxed by countries using tax stamps. From the large quantity, high quality, and variety of fake stamps, it appears that multiple organized crime organizations are involved in distributing fake stamps and earn significant amounts of money by selling the “stamps” they make. Because of this counterfeit activity which can be easily noticed in various countries, the demands made on tax stamps have become much more complex than a strip of paper.
WHY USE TAX STAMPS?
Tax stamps are stamps used by governments to collect taxes and fees. Like so many products, these tax stamps are often subject to counterfeit activities as they have monetary value, that is why items on which a stamp is applied (products, documents...) are mainly targeted for counterfeiters. If they are used to collect taxes and fees Tax stamps can be also used to prevent counterfeit products from entering the market. Many of the technologies used in documents and other brand security products can be incorporated into tax stamps, such as a 2D barcode. Taking advantage of digital printing technology, 2D barcode makes each tax stamp unique and secure. It can include service information and also tax data which is verified when scanned.
We can offer peace of mind through one of the best authentication and tax revenue
collection solutions available. The secure Pelta™ 2D code can be leveraged and when combined with other high-security products such as holograms, provides the highest level of anti-fraud protection.
Features and benefits of using this solution for tax stamps:
• Alcohol can be tracked and traced from production to receipt by customer
• Codes can be authenticated by law enforcement by using an app on a smartphone
• Validate whether the product was legitimately imported
• Low cost to implement
• Product diversion can be detected
• Organised crime and illicit trade detection
In an ever competitive world, the drive for efficiencies and visibility into as many aspects of a business, process or environment, where one can gather data through connected devices, allows cutting-edge businesses to stay ahead of the competition. Our latest print and Apply system is Industry 4.0 enabled and has unique features such as print previews and code check functions to name a few.
HOW TO PROTECT, SECURE AND MODERNIZE TAX REVENUES FROM FISCAL STAMPS – Neopost White Paper
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