New investment in track and trace systems, rising excise taxes, and wider commercial applications will drive tax stamp growth in the next five years, according to a new report published by Reconnaissance International.
The third edition of the ‘Tax stamps and traceability: a market analysis and technical update’ identifies cannabis and vaping products as new markets for tax stamps to tap into, at a time when the continued trade in illicit tobacco and alcohol sees revenue agencies using the devices as effective weapons in the fight against counterfeiters and criminals.
The report also points to the fact that by 2023, tobacco products in at least 60 countries will need to have track and trace systems in place to comply with the WHO FCTC Protocol to eliminate illicit trade in tobacco products. This could open up additional tax stamp markets and more commercial opportunities for an established product.
More than 120 billion tax stamps are used annually, the report says, to secure tobacco and liquor excise revenues or as part of product authentication and secure tax and trace programs. However, it adds that while the number of countries adopting tax stamps continues to rise, the market for cigarettes and spirits is falling in the face of declining global tobacco consumption and a marginal increase in the sale of spirits.
Coming against the backdrop of WHO’s framework designed to curb the illicit trade in tobacco products, the report is the only one of its kind to cover the global alcohol and tobacco tax stamp market and considers both the current and future tax stamp and traceability environment in specific countries and regions.
Cannabis and fuel marking, among other products, are identified as emerging markets for tax stamps and tax marks, where they can be used effectively to protect against the threat of counterfeiting and secure taxes lost to criminals and other nefarious activity.
The question of why paper-based tax stamps, as opposed to digital alternatives, continue to provide the best protection against acts of non-compliance and illicit trade is considered as part of a section looking at the current landscape, the evolution of tax stamp programs, and what’s compelling some countries to extend take-up while others will not consider using them.
Further sections examine the practical steps involved in creating tax stamp and traceability programs and feature a quantitative analysis of current and future volumes based on consumption data obtained from GlobalData. Information on the different types of tax stamps and systems being deployed across the globe with an assessment of their impact and effectiveness are also included.
‘Tax stamps and traceability: a market analysis and technical update’ looks to the future with insight and opinion on questions around the viability of paper-based tax stamps and the impact of the WHO FCTC Protocol on tobacco track and trace systems which use tax stamps. It also asks what the common characteristics of these systems are that successfully increase tax revenues and reduce illicit trade.
Nicola Sudan of Reconnaissance International is the report’s editor. She said, “This is an important strategic report, offering insight, analysis and to those with a vested interest in tax stamps, the knowledge needed to progress with their plans in this burgeoning sector.
“Tax stamps offer a cost-effective way to secure excise revenue, while the authentication benefits provided cannot be overstated. It is why they will continue to be highly regarded and used by revenue authorities around the world well into the future.
“So whether your country, state or jurisdiction currently uses a tax stamp scheme, or is considering investing in such a scheme, it would be beneficial to find out what a modern program can deliver and why now is the right time to introduce them or expand your current scheme. This report will aid in making the right decisions and choices.”
Full details of how to purchase the report – which will be available in electronic and printed form – are available here
Reconnaissance International is a global source of technical and business intelligence for secure documents, personal identification, brand protection, pharmaceutical anti-counterfeiting, holography, and currency. It produces several business-to-business newsletters, organizes conferences and trade shows, publishes directories, industry studies, and guidebooks, undertakes consulting projects, and provides secretariat services to the International Tax Stamp Association.