TAX STAMPS

Tax Stamps for Tobacco
Tax Stamps for Alcohol

Tax Stamps for Tobacco

Tax Stamps for Tobacco

Tax stamps are becoming more widely used by governments. In 2013 approximately 81 countries worldwide use tax stamps. According to research done by the Canadian Tobacco Control Research Initiate, an anti-illicit trade strategy that incorporates tax stamps, track and trace, licensing and enforcement is the most effective way to manage the so-called ‘sin’ taxed products.

In the SADC region of Africa, it is estimated that the loss in tax revenue due to illicit cigarette trade includes:

  • 23 % of total consumption in South Africa (about 6.3 billion sticks – estimated revenue loss US$ 323 million).

In the other countries visited, the estimates below of the size of illicit trade were provided by industry:

  • 12% to 15% of total consumption in Namibia (50 million sticks: estimated revenue loss of US$ 4 million);
  • 1% to 2% of total consumption in Mozambique (estimated revenue loss of US$ 250,000); and
  • Minimal proportion in Zimbabwe.
  • 10% to 13% of total consumption in Zambia (estimated revenue loss of US$2 million);
  • 10% to 12% of total consumption in Swaziland (10 million sticks: estimated revenue loss of US$ 0.8 million);
Information relating to the illicit trade in alcohol and cigarettes copied from SADC Review – Study into the illicit trade in excisable product with particular reference to alcohol and tobacco products.

Benefits:

  • Meets the FCTC (Framework Convention on Tobacco Control) Protocol mandate
  • Meets ISO 9001 standards
  • Meets WCO (World Customs Organisation) requirements
  • Is a cost effective solution to theft and illicit trade
  • Utilises existing infrastructure
  • Allows full track and trace which:
    • Enables law enforcement agencies to protect the supply chain
    • Enables successful prosecution
    • Empowers all stakeholders, right to the end consumer
  • Is non-intrusive on branding
  • Is non-intrusive on the production lines
  • Can be installed and commissioned within 3 months
  • Is turnkey
  • Provides a scalable and cost effective tool for controlling products both for production and beyond
  • Ease of use and implementation

Tax Stamps for Alcohol

Tax stamps for Alcohol

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. We found few estimates available:

  • 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 );
  • No estimate available for Swaziland but one importer estimated that legitimate sales of spirits had reduced by 40% in 2010 (estimated revenue loss of US$ 3 million);
  • Mozambique is experiencing significant illicit consumption of imported and national products. Industry estimate is that up to 50% of nationally produced spirits is not tax paid and 50% plus of imported product is illicit. Following steep increases in the excise duty rate, revenue receipts for spirits and wine fell in 2009 by 35%. (Estimated revenue loss about $US1.6 million from domestic production and US$1.2 million from imports = US$ 2.8 million.);
  • In Zambia, there is significant smuggling of genuine and counterfeit premium brand spirits, wine and beer products. One interviewee estimated, unofficially, that the excise loss was about K15 bn a year or approximately US$ 3.1 million with a possible additional US$ 3 million advised by industry in relation to losses from opaque beer. (Excise duty receipts on imported spirits and clear beer fell by 35% in 2010);
  • In Namibia, industry’s best rough estimate was “less than 10%”. (No revenue loss estimate available);
  • In Zimbabwe, an industry estimate of illicit alcohol was between 100,000 and 150,000 litres a month and growing (estimated revenue loss US$ 2 million).

Information relating to the illicit trade in alcohol and cigarettes copied from SADC Review – Study into the illicit trade in excisable product with particular reference to alcohol and tobacco products.

Benefits:

Pelta™ solution can be added to most standard 2D codes:

The Pelta™ solution can be added to most 2D codes and used as the basis of an authentication solution or as part of a complex track and trace solution.

Range of solutions available to choose from:

Combine Pelta™ with other anti-counterfeiting solutions to provide the highest level of anti-fraud protection.

Black marketeering and diversion can be detected:

The Pelta™ server using geo-tracking technology can detect and flag for investigation when product diversion happens. The Pelta™ server makes use of geo-tracking technology which is included in the Track and Trace solution.

Validate whether a product was legitimately imported:

Smartphones can be used to validate alcohol in order to verify whether the goods were imported legitimately.

Low initial cost:

PeltaTM codes can be created by any standard coding or printing equipment at 300 dpi or higher. For unique or serialized barcodes, variable printing support is required.

For more information email us at info@pagemarkafrica.com