It was 15 years ago, in July 2009, that the very first Tax Stamp News™ (now called Tax Stamp & Traceability News™) was published. To mark the occasion, we thought it would be interesting to go back in time, to the main news items covered by the newsletter between 2009 and today, and how they have developed over this period.

India is the largest market in the world for liquor tax stamps, given that 27 states consume 30-35 billion tax stamps annually. While tax stamps at a global level are mainly used on tobacco products as part of a federal scheme, the situation is different in India, where almost all stamps in circulation are used on alcoholic beverages at the individual state level – and no stamps are used at all on tobacco products.

Thanks to the COVID-19 tobacco sales ban in 2020, South Africa has one of the highest illicit tobacco levels in the world today, with an Ipsos study finding that almost 60% of stores across the country are selling products for less than the minimum collectable tax (MCT).

Chile’s fiscal traceability system on tobacco products (SITRAF) has been instrumental in allowing the Chilean tax authority, Servicio de Impuestos Internos (SII) to identify a company that has been illegally manufacturing cigarettes in the country.

According to experts from Brand Monitor, an online and offline market surveillance company, the demand for counterfeits of specific brands is generated not so much by end consumers as by retailers, who tend to piggyback off the marketing campaigns and reputation of brand owners, and then attract consumers with the offer of lower prices.

Work has now begun on the programme for the next Tax Stamp & Traceability Forum™, which will take place from 7-9 April 2025, in Cape Town, South Africa.

The global software engineering company ELEKS has been awarded a tender to develop Ukraine’s ‘e-Excise’ tax stamp and traceability programme for tobacco and alcohol products.

Following De La Rue’s announcement, a few months ago, that it was in discussions with several parties interested in acquiring one or both of its businesses – Authentication and Currency – the company has now entered into a definitive agreement for the sale of its Authentication division to Crane NXT, for £300 million.

The global scale of counterfeit and other illicitly traded cement is a significant issue, particularly in developing countries like Pakistan, Kenya, Uganda, and Nigeria. This article looks at how these countries are tackling the problem.

Recognising the importance of track and trace systems for curbing tax evasion in key industries such as tobacco, cement, sugar, and fertiliser, the new Prime Minister of Pakistan, Shehbaz Sharif, has constituted a 10-member task force to address the technical, legal, and administrative challenges hindering the progress of such systems.

Between January and August this year, Gambia Revenue Authority (GRA) collected GMD 48,470,427.78 ($702,000) in excise duties, compared to just GMD 6,312,608.78 ($91,000) the previous year. This significant increase represents more than 800% of the country’s total excise revenue mobilisation.

KPMG has released its latest annual study on illicit cigarettes in Europe1, commissioned by Philip Morris Products SA. The study shows that while illicit consumption in the 27 EU member states declined by 0.6 billion sticks in 2023, to reach 35.2 billion, overall illicit consumption in the 38 markets covered by the study rose by 3%, reaching 52.2 billion sticks.

UAE-based E7 Group, a provider of commercial printing, security solutions, sustainable packaging, and logistics services, has announced a significant AED 182 million (approximately $50 million) investment in its security solutions division, E7 Security.

Florida-based Metrc has launched Retail ID™, a serialised QR code solution for enhancing cannabis supply chain transparency at retail level. Rather than replacing Metrc’s existing RFID tag system on cannabis plants and bulk packaging, the code is intended to complement it.

To mark 15 years since the first Tax Stamp News™ was published, Tax Stamp & Traceability News™ is going back in time to the main news items covered by the newsletter between 2009 and today, looking at how they have developed over this period.

Those round-shaped magenta discs that, since 2006, have adorned the labels of UK spirits and wine bottles, as a visual proof of duty paid, now look set to disappear, following a government announcement that the discs will be abolished once a review by HM Revenue & Customs (HMRC) has taken place.

Combining physical and digital elements on tax stamps ensures that the strengths of both are exploited, and the weaknesses of each are covered. The International Tax Stamp Association (ITSA) is pleased to announce the launch of a social media campaign examining the topic in depth, featuring quotes from industry insiders and stories from around the world that demonstrate the strength of a ‘phygital’ approach.

It was 15 years ago, in July 2009, that the very first Tax Stamp News™ (now called Tax Stamp & Traceability News™) was published. To mark the occasion, we thought it would be interesting to go back in time, to the main news items covered by the newsletter between 2009 and today, and how they have developed over this period.

Authentix has announced an exclusive partnership with ARMOR-IIMAK, a global player in the thermal transfer ribbon printing industry, to provide brand owners and their authorised contract manufacturers with a new covert security ink available in thermal transfer ribbon format.

The Global Centre for Maritime Decarbonisation (GCMD) has completed a two-year pilot study aimed at ensuring supply chain integrity and fuel authenticity for drop-in green fuels (ie. renewable fuels made from biomass sources that can be blended with petroleum products).

In a recent website article, the Peter G Peterson Foundation, a US nonprofit organisation for building a sustainable fiscal path, took a look at excise taxes in the US and how they fit into the federal budget.

Metrc has announced a new contract with the State of California, retaining its role as the state’s cannabis track and trace software provider.

Following complaints over £5 fines being dished out to the recipients of letters and parcels suspected of carrying counterfeit postage stamps, the UK postal service, Royal Mail, has launched a scanner tool in its app that lets customers check if a stamp is counterfeit.

The Philippines’ House Ways and Means Committee has approved legislation that will expand the country’s tobacco tax stamp system into a more comprehensive approach for tracking the entire supply chain of tobacco products, including their origin, route, and final point of sale.

During the Philippine Vape Festival, held in August, the Bureau of Internal Revenue (BIR) seized over 5,000 illicit vape products displayed and offered for sale at the event. The main way of identifying the vapes were illicit was their lack of tax stamps.

Microsoft Italy and the Istituto Poligrafico e Zecca dello Stato (IPZS – the Italian Mint) have launched a strategic collaboration based on artificial intelligence to protect the authenticity of Italian products from counterfeiting. One of the pilot projects for this collaboration relates to the most exported Italian wine in the world, but also the most imitated: Prosecco.

The Korea Minting, Security Printing and ID Card Operating Corp (KOMSCO) has developed a tax stamp in collaboration with VOICEYE, a 2D high-density barcode solution specialist, with a focus on critical global markets like tobacco, alcohol, and pharmaceuticals.

Reconnaissance International – co-publishers of Currency News™ (and a leading global source of business intelligence on currency, identity, authentication, tax stamps, and traceability) – have unveiled a new industry reference glossary.

This article presents an integrated approach for ensuring producers of sugar-sweetened beverages (SSB) correctly report the volumes they put on the market (POM) and pay the appropriate SSB taxes and recycling fees.

As has thankfully become a bit of a tradition again, post-COVID, ITSA (International Tax Stamp Association) recently held a pre-conference seminar on the occasion of the High Security Printing™ Latin America conference, which this year took place in Santiago, Chile.

Texas-based security solutions provider Authentix has acquired the authentication business assets of Meta Materials – namely, Nanotech Security Corporation (NSC) – for $10 million, excluding assets such as cash and real estate.

De La Rue has announced its full year results for the period ending 30 March 2024, with its Authentication division (including tax stamp programmes) achieving record sales of £103.2 million. This figure surpasses the division’s £100 million target, and represents a 12.5% increase over 2023. The results are, however, overshadowed by a £235 million loan that becomes payable next July.

By 2025, more than 100 million smartphone users in the US will use a QR code scanner on their mobile devices, compared to 70.6 million in 2020. But how can citizens be sure that what they are scanning is legitimate?

According to Statista, the e-cigarette market is projected to generate revenue of $26 billion in 2024, with a 3.93% global compound annual growth rate between 2024-2029. While the legitimate market is growing, the vape industry, like other sectors, is plagued by counterfeit and other illicit products.

Take a look at TSTN’s main news items between 2009-2011, including problems faced with finalising the FCTC Protocol, efforts in the US to introduce federal tax stamps on cigarettes, and the industry’s growing acceptance of digital/physical solutions, unique identifying codes and smartphone authentication.

Francisco Mandiola looks at some interesting developments in seafood traceability, including a new certification system in Chile that captures images of fish on a conveyer line and then uses specific algorithms to identify each species.

Metrc, the leading provider of cannabis regulatory technology systems to US state governments, has announced a new contract with the Twenty-Nine Palms Band of Mission Indians, a federally recognised Native American tribe located in Southern California. This represents the first ever track and trace contract with a tribal government.

In a rapidly evolving excise landscape in which counterfeit goods and tax evasion pose major challenges, the incorporation of both physical and digital elements on tax stamps has emerged as a critical strategy for governments and businesses alike.

Smurfit Kappa Security Concepts (SKSC) has invested over €3 million in a brand new custom press (Perfect NT security printing press) from Rotatek.

According to the Sarajevo Times, the implementation of increased controls by Bosnia and Herzegovina’s tax authority and law enforcement agencies have drastically reduced the tobacco black market in the country, to the point where tobacco excise revenues are expected to exceed BAM 1 billion ($548 million) for the first time in history.

Following a tender process launched in 2022, the Ethiopian Ministry of Finance has recently introduced a new excise stamp management directive.

In the May 2024 issue of Tax Stamp & Traceability News™, we described how a white paper published by an informal EU parliamentary working group on tobacco products had highlighted the permeability of some European Commission departments to tobacco industry lobbying. The paper raised concerns that such permeability was causing delays in the revision of two important tobacco regulations: one on taxation and one on traceability.

Food fraud has become quite the trend globally and, in May 2024, the World Trade Organisation (WTO) published a report on illicit trade in food and food fraud.

Reconnaissance International has unveiled a new industry reference glossary, containing over 700 sector-specific terms and definitions.

Researchers in China have developed a method for identifying counterfeit cigarettes, based on the stable isotope profiles of the tobacco contained within them.

At the Optical & Digital Document Security™ (ODDS) conference in April, Michael Natan, President of Diametryx Inc, presented this new company’s intriguing colour-change particles for use as an overt security feature.

Xeikon, a provider of digital printing presses, has partnered with KURZ and SCRIBOS (part of the KURZ group) to offer a solution that enables digital label printers to combine variable metallic elements, serialised QR codes with embedded copy-protection patterns, and interactive features… all in a single printing pass.

In this month’s interview with a member of the International Tax Stamp Association (ITSA), we delve into Thailand’s tax stamp and security printing market courtesy of Chanwanich CEO Ronnachai Kongboonma, exploring how the nation’s industry has developed over the past century and how it’s likely to evolve in the coming years.

Reconnaissance International (publisher of Tax Stamp & Traceability News™ – TSTN) has announced that the 2024 Holography Conference Online (THCO) will be held on 12-13 November. The call for papers is now open, and delegates are invited to submit a proposal to present by 13 September 2024.

At the end of April, Gelmer Leibbrandt, Managing Director of Royal Joh Enschedé, signed a new contract with the Dutch Customs Authority for the printing of tobacco tax stamps, thereby continuing a service that has already lasted for over 100 consecutive years.

In 2023, an informal EU parliamentary working group on tobacco products, led by French MEPs Anne-Sophie Pelletier, Pierre Larrouturou and the late Michèle Rivasi, organised a number of roundtables to discuss how the permeability of some European Commission departments to tobacco industry lobbying was causing delays in the revision of two important regulations (see TSTN July 2023).

Between October-December 2023, the UK Tobacco Manufacturers’ Association (TMA) commissioned a nationwide poll of 12,000 smokers on their attitudes, awareness and understanding of illegal tobacco. This is the ninth year this survey has been carried out.

A new labelling technology that prints a QR code directly onto food such as fruit has been developed by a team of researchers in South Korea, according to an announcement by the country’s Ministry of Science and ICT.

As of 31 May, Chile’s largest beverage company, CCU, will increase consumer prices on nectars, hypotonic and isotonic drinks, by 9%, to absorb a change in the calculation of value-added tax on non-alcoholic drinks. The change was announced in April by the Servicio de Impuestos Internos (SII), Chile’s tax authority.

In a recent Ukrainian National News (UNN) article, Oleksandr Ruvin, Director of the Kyiv Scientific Research Institute of Forensic Expertise, described the steps taken by the institute to identify smuggled cigarettes and counterfeits of well-known brands, with tax stamps featuring high on the list of elements to check.

Work will soon begin on preparing the programme for the next Tax Stamp & Traceability Forum™, which will take place from 7-9 April 2025, in Cape Town, South Africa.

The liquor industry in India is a major source of excise revenue that needs protecting against non-compliance and illicit trade. To this end, two decades ago, the Indian state of Kerala introduced hologram- embedded security tax labels on Indian-made foreign liquor (IMFL).

Although this article concerns ongoing problems with the counterfeiting of postage stamps, some of these stamps now carry a combination of physical and digital features common to tax stamps. Our industry may therefore be interested in recent developments around the counterfeiting of these ‘new-age’ postage stamps.

While the banknote industry often laments the limited real estate available on a banknote, tax stamps are typically 10 times smaller than notes. Furthermore, most stamps are required to carry variable data as well as multilevel security features adapted to different users with different authentication capabilities.

Depending on who you ask, Panama – which recently played host to the COP9 meeting of parties to the WHO Framework Convention on Tobacco Control (FCTC) – is either a best-in- class example of a country using tobacco controls to excellent effect, or the world’s biggest hub for illicit cigarette trade.

In our third 2024 interview with a member of the International Tax Stamp Association (ITSA), we speak to Marietta Ulrich- Horn, Co-Founder and CEO of Securikett.

From 1 June 2024, Kyrgyzstan plans to introduce mandatory marking on all types of fuel products. In particular, it is looking to mark gasoline and diesel fuel – sold exclusively at filling stations – with irremovable molecular markers.

During his 2024 national budget speech, in February, Finance Minister Enoch Godongwana said the South African Revenue Service (SARS) was deploying closed-circuit television (CCTV) and related technologies on the premises of licensed tobacco manufacturers, to address the high levels of illicit tobacco.

A number of recent developments in tamper proof labels caught our attention, two of which are described in this article.

The World Health Organisation (WHO) South-East Asia Region has released a new research report on the illicit trade of tobacco in the region, with the conclusion that illicit levels are ‘generally not alarmingly high in most south-east Asian (SEA) countries’.

While many tax stamp programmes in operation today are delivering significant benefits (including increased tax collections), other programmes are not so successful. Why is this?

Pakistan’s economy is currently going through a crucial period, like many other economies in the world. Along with unprecedented floods and political turmoil, the economy is beset by skyrocketing interest rates and inflation, as well as a decline in imports.

Crane NXT, a leading industrial technology company, has signed a definitive agreement with Investcorp Technology Partners to acquire OpSec Security for $270 million in cash, subject to customary adjustments.

The state of Uttarakhand in India has invited bids for full polyester holographic tax stamps to replace paper-based stamps on alcohol products, amid protests that the polyester stamps contravene a country-wide government ban on single- use plastic items below 100 microns in thickness.

Some years ago, I was asked to give a speech to a Latin American country’s customs authority with respect to fuel marking. To prepare for my presentation, I spoke to several suppliers and did some research with respect to alternatives and positive results around the world.

It’s time to get your agendas out and save the dates for two in-person tax stamp and traceability events.

The World Health Organisation (WHO) South-East Asia Region has released a new research report on the illicit trade of tobacco in the region, with the conclusion that illicit levels are ‘generally not alarmingly high in most South-East Asian (SEA) countries’.

In our second 2024 interview with members of the International Tax Stamp Association (ITSA), we speak to Barna Barabás, Co-Managing Director of JURA, a global brand name in security printing.

In the first of our 2024 interview series, we explore the tax stamp industry from an insider perspective, delving into its challenges, opportunities, and potential developments with International Tax Stamp Association (ITSA) members.

In 2023, we analysed how Chile’s cigarette traceability system, SITRAF (Sistema de Trazabilidad Fiscal) had been performing since its inception in 2019. At that time, a study conducted by local economists found that the implementation of the system in Chile had resulted in better control of legitimate sales and increased revenues.

The Third session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products (MOP3) concluded on 15 February, in Panama City, after taking ‘decisive action to combat illicit trade in tobacco products’, according to a press release from the Secretariat of the WHO Framework Convention on Tobacco Control (FCTC).

The programme for the third Optical and Digital Document Security™ (ODDS) conference is now available.

In this country case study, Tim McIntyre, Senior Director Excise Control, Canadian Bank Note Company, describes the journey to legalisation of recreational cannabis in Canada, including the launch of an excise regime for a brand new market.

In response to the European Union's (EU) Digital Product Passport (DPP) initiative, the International Tax Stamp Association (ITSA) has crafted comprehensive recommendations to ensure a secure and interoperable implementation.

In 2023, Sovereign Border Solutions (SBS) wrote a series of three articles for Tax Stamp & Traceability News™ focusing on free trade zones (FTZs) and how they have become ‘hotspots’ for the illicit economy.

During the 2023 Tax Stamp and Traceability Forum™, held in Tbilisi, Georgia, I chaired a panel discussion on a topic that remains of ongoing interest to tax authorities: how are tax stamps really being authenticated in the field, and how are inspectors ensuring taxpayer compliance?

Lebanon is one of the few nations where the tobacco sector, including tobacco leaf farming and manufacturing, falls under state control.

Last year, we launched a series of interviews with International Tax Stamp Association (ITSA) members to collect personal insights into the advances, challenges and possible future developments shaping the tax stamp industry’s evolution.

The manufacturing and sale of counterfeit beverages is alarmingly high in Pakistan, particularly in Punjab, the country’s most populated province. This illegal activity is continuing unabated, despite raids and confiscation of machinery carried out by the Punjab Food Authority (PFA).