Tax Stamps and Excise Revenue Labels are some of the accepted revenue generation methods used in many countries of world including India, Kenya, Mexico. These countries impose high taxes on sales of Tobacco and Alcohol products since they constitute big part of the annual revenue collection for Central or State governments. However, high taxes also act as an incentive to evade taxes by way of counterfeits or contraband.
Revenue Authorities use high security tamper proof Tax Stamp/ Revenue Labels on each product pack. Unfortunately, these measures have not been fool proof because of lack of detection tools. This is causing loss of thousands of Crores to Revenue Authorities.
With due respect to all the authorities, the current control measures are obsolete and they in no way stops counterfeits. Why? Example, Excise department has issued One Hundred Thousand revenue labels to producer to affix on one hundred thousand units of wine bottles. How do Excise Inspectors know exact duty paid inventory in a store when these stamps are not scannable? If they have to manually count each carton and bottle and then we all can understand the extent of compliance. This is a challenge Government of South Sudan had with one of vendor who won the contract for tax stamps but failed to deliver scanners to read the stamps.
We at CPIGS have developed end to end anti counterfeit solution which includes complete track & trace capability, advanced scanners to read coded QR Codes containing critical information. Entire solution is far less expensive and far more practicable solution.