Case Studies

Call to adopt tax stamps

by Mark Rowe

A record haul of illicit goods including alcohol has highlighted a pressing need for authorities to adopt tax stamps to clamp down on smuggling and secure revenue, according to a trade body. The International Tax Stamp Association (ITSA) seeks to highlight the role and impact of tax stamps. The police operation saw enough alcohol to fill 12,000 baths, including 10,000 litres of contaminated liquor in the UK, seized as part of a Europol-Interpol initiative. This was part of a three month operation involving police forces in 57 countries that led to the biggest-ever global crackdown on food and drink goods.

ITSA said the seizure was a significant step forward in the battle against crime and a timely reminder that protecting consumers from illegal and dangerous fake products is paramount. However, the organisation says more has to be done to tackle illicit alcohol at source and is urging excise and revenue authorities around the world to look at the benefits of tax stamps as part of effective strategies to tackle chronic problems.

It is estimated that illicit or toxic alcohol leads to thousands of deaths a year while costing the authorities lost tax revenue. As well as providing visible proof of tax payment and revenue collection, tax stamps on liquor bottles ensure quality and help to identify illicit goods for seizing and destruction by the appropriate authorities. Hence tax stamps, as a visual security feature against anti-counterfeiting.

Chair of ITSA Juan Yañez said: “Alcohol brand owners and those authorities responsible for legislation should be concerned by the scale of this latest seizure. More needs to be done, and quickly, to start to deal with the problem and this might include increased integration of tax stamps as part of a refreshed brand protection strategy. Tax stamps play a vital role as a highly effective, valuable weapon in the ongoing battle to thwart counterfeiters and fraudsters.

“All involved in the supply chain – manufacturers, distributors, consumers and tax authorities – will be reassured by the presence of stamps on products and recognise the benefits they provide.”

Yañez, pictured, added that tax stamps play a fundamental and essential role in collecting important and highly valuable revenues across the globe: “In bringing together representatives from all parts of the industry, ITSA represents a highly significant step in helping to ensure that effective collaboration and best practice is maintained between the industry, regulators and policymakers.”

ITSA was founded by industry companies and stakeholders in the sector. One objectives is to promote the introduction of the ISO 19998 standard for tax stamps. Members are Advanced Track and Trace, Ashton Potter Security Printers, Chanwanich Security Printing, Holoflex, Holostik India, Manipal Technologies, OpSec Security, SICPA, Surys (formerly Hologram Industries), Thomas Greg & Sons de Colombia, Allexis sro, Jura JSP, Luminescence, and Rolland Enterprises.

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