In the June 2025 issue of Tax Stamp & Traceability News™, we reported that KPMG had released its ‘Illicit Cigarette Consumption in Europe’ report for 2024, commissioned by Philip Morris International. Prompted by a later in-depth report by the British Broadcasting Corporation (BBC) on the illicit cigarette trade in Hull, a port city on England’s North Sea coast, this article examines the situation in the UK as a whole.

According to Tobacco Reporter, the Philippines Bureau of Internal Revenue (BIR) has reported collections of PHP 942 million ($17 million) in excise taxes, on 130 million millilitres of vape products, in the six months since its vape stamp system was introduced (1 June 2024). In 2023, those numbers were only PHP 224 million ($4 million) on 11.2 million millilitres, for the entire year.

During the April 2025 Tax Stamp & Traceability Forum™, Linstrom Marangu, Health Tax Specialist from the African Tax Administration Forum (ATAF), chaired a panel discussion on the need to integrate excise systems into an overarching tax administration platform.

In April this year, President Noboa of Ecuador, who has positioned himself and his administration as focused on law and order, was re-elected with over 55% of the popular vote. His stance on fighting corruption and drug- related violence might prove fertile ground for a more efficient fight against other criminal activity such as the rise in contraband cigarettes. Months before the election, a congressional justice committee highlighted the importance of tobacco traceability in a draft bill against illicit trade but, so far, the regulations established in late 2021 remain in force.

When designing security features for tax stamps, attention is increasingly being paid to features created by digital printing, since this technology is developing very fast. However, many highly effective tax stamps, in use today, carry features printed with traditional, analogue methods, such as offset and intaglio. So, which is better? Or should both methods be used together for an optimal security solution?

According to local press, the Tanzania Revenue Authority (TRA) has successfully raised the level of compliance in the market of excisable goods subject to tax stamps, thanks, in large part, to the deployment of artificial intelligence (AI) technology.

In a move that is both welcome and long overdue, the US Food and Drug Administration (FDA) and US Customs and Border Protection (CBP) recently announced the seizure of nearly $34 million worth of unauthorized e-cigarettes during a coordinated operation at the Los Angeles/Long Beach seaport. The scale and scope of this joint action – nearly 1.4 million units of illegal products – signals a critical shift: enforcement against the illicit vapor market is no longer just theoretical.

A new World Economic Forum report1 has identified generative AI watermarking as one of the top 10 emerging technologies of 2025.

Africa is a continent with a serious financing gap. According to the African Union, ‘Africa’s sustainable financing gap until 2030 is about $1.6 trillion,’ and ‘the continent needs additional financing of about $194 billion annually to achieve its Sustainable Development Goals by 2030. This financing gap is equivalent to 7% of Africa’s GDP’.

In recent years, governments have been expanding the range of goods and services they apply excise tax and regulatory controls to – not only for generating additional revenue, but also to influence consumer behaviour, address public health concerns, and support environmental and regulatory objectives.

Amid sweeping efforts by President Milei’s government to reform Argentina’s tax administration, the country’s tobacco tax stamp programme is an important step towards such reform. While the programme has helped Argentina’s tax authority reconcile production volumes with the number of products actually sold and taxes paid, there is an ongoing price disparity in the market, between manufacturers and resellers, that is ultimately resulting in less tax going to the government.

KPMG has released its latest annual study on illicit cigarettes in Europe, commissioned by Philip Morris Products SA, and covering 38 European markets (including 27 EU member states). The study shows that while overall illicit consumption in Europe grew marginally in 2024 (by 0.2%), consumption in the EU27 soared by 10.8% to reach 9.2% of the total market – the highest level in nearly a decade.

Togo has launched a fuel marking system, initially for subsidised industrial diesel, but rapidly extending, in a second phase, to unleaded gasoline and road diesel.

The Uttarakhand State Excise Department, located in northern India, has enhanced its tax stamps by incorporating optical security features.

The Transnational Alliance to Combat Illicit Trade (TRACIT) is a non- governmental organisation consisting of corporations and select trade associations within a range of sectors, including tobacco, alcohol, agri-foods, petroleum, and pharmaceuticals. It has released a report titled ‘South Africa’s Fight Against Illicit Trade – A Strategic Review’. The report reveals that while the country has improved its cross-border enforcement and customs capacity, as well as controls over the informal economy, it has performed significantly less well in other areas with regard to anti-illicit trade efforts.

New York State is at a critical juncture. Despite legalizing adult-use cannabis more than two years ago, the state has yet to implement a meaningful seed-to-sale tracking system. As a result, the illicit market is not just thriving – it’s dominating.

The Government of Uganda, through the Ministry of Energy and Mineral Development and the National Bureau of Standards, has introduced secure stickers with unique identifiers for displaying at fuel stations as visible proof of regulatory compliance.

According to the Pakistani press, the country’s government has introduced an amendment to the 1934 Petroleum Act to implement real-time tracking of petroleum products, from import and production to retail sale. This move aims to reduce massive annual revenue losses estimated at PKR 300-500 billion ($1.1-$1.8 billion), due to smuggling and adulteration of petroleum products.

At the recent Tax Stamp & Traceability Forum™, Dr Hana Ross from the World Bank Global Tax Program shared findings from a 2020 study examining Poland’s approach to regulating the raw tobacco supply chain. The study highlighted how targeted controls helped the country significantly reduce its illicit tobacco trade.

While it is still early days for the Trump administration, news agencies are chock-full of stories to report. Amongst the most popular have been the constant changes in US trade policy, which are not only surprising to many, but which seem to lack a clear path for allowing governments and business to modify their own policies to manage the effects of the US ones.

The UK’s decision to implement a new vaping products duty, paired with a mandatory duty stamp, marks a pivotal evolution in its regulatory posture toward nicotine-containing vape products.

Crane NXT recently announced the launch of a new brand identity: Crane Authentication. This unified brand consolidates the strengths of recently acquired De La Rue Authentication, the Smart Packaging assets of TruTag Technologies, and OpSec Security (purchased last year). Crane NXT now comprises two segments: Security and Authentication Technologies (which includes Crane Currency and Crane Authentication) and Crane Payment Innovations.

This month, we sat down with the new Chair of the International Tax Stamp Association (ITSA), Tim McIntyre of Canadian Bank Note Company Limited, to discuss his background, his thoughts on the industry and how he plans to support an evolution of ITSA to take a more agile and proactive leadership position within the field of tax stamps and traceability.

LEONHARD KURZ, a global player in security and surface finishing technologies, has announced the integration of its subsidiary SCRIBOS, a digital platform provider, under a new unified brand identity—KURZ SCRIBOS.

Following its 7th Annual General Meeting, held in April 2025 in Cape Town, South Africa – on the occasion of the Tax Stamp & Traceability Forum™ – the International Tax Stamp Association (ITSA) is pleased to announce the appointment of a new chairman, and the re-election of two directors, as it celebrates the 10th anniversary of its founding.

The recent Tax Stamp & Traceability Forum™ (TSTF) has been hailed by some as the best TSTF ever. Yet, the overall number of delegates in attendance (170) was low compared to previous events (over 200). So, why was this 12th edition deemed so successful? Let’s take a look.

Last month, we spoke to the CEO of Quantum Base, a new International Tax Stamp Association member that brings quantum technology to traditional printing techniques to create virtually uncounterfeitable tax stamps. This month, we’re diving deeper into this technology and exploring how it could revolutionise revenue collection and traceability.

During the 2025 Tax Stamp & Traceability Forum™, Francis Tuffy of Reconnaissance International chaired a panel discussion on the role of physical security features in an increasingly digital landscape, where artificial intelligence (AI) and quantum computing (QC) are coming to the fore.

The alcohol industry has warned that an increase in South Africa’s excise taxes will drive even more financially pressured consumers towards the already substantial black market.

Linstrom Marangu, Health Tax Specialist from the African Tax Administration Forum (ATAF), has confirmed his participation at the Tax Stamp & Traceability Forum, which takes place from 7-9 April in Cape Town, South Africa.

Bangladesh’s National Board of Revenue (NBR) chairman Md Abdur Rahman Khan has announced that the NBR is considering introducing QR codes on tobacco tax stamps.

India is currently facing regulatory uncertainty around authentication and traceability regulations. While on one hand it recently amended its Central Goods & Services Tax (CGST) Act to allow for the introduction of tobacco traceability, on the other hand it has rolled back key measures for pharmaceuticals – possibly due to the increasingly widespread copying of genuine QR codes for track and trace onto counterfeit drugs.

The revised and updated international standard for tax stamps has passed through an important stage in its formal adoption by ISO (International Organization for Standards), advancing from a Working Draft to a Committee Draft. The standard provides guidance and best practice recommendations to revenue authorities, but is also relevant to suppliers as it will help them appreciate the approach of their actual or potential customers.

This month, we have a new entry in our ongoing interview series revealing the industry insider insights of International Tax Stamp Association (ITSA) members.

In March, the Uganda Revenue Authority (URA) hosted an eight-member delegation from Malawi’s tax authority, for a five- day tax stamp benchmarking visit.

In March, the tobacco industry launched an extensive media campaign, making exaggerated claims about the illegal cigarette trade in Pakistan and advocating for tax reductions. This campaign has been widely publicised, attempting to paint a picture of rampant illicit trade in the cigarette market, allegedly causing significant revenue losses to the government. However, the data and methodologies used to support these claims appear to be misleading, creating an inflated perception of the extent of the problem.

At the recent High Security Printing™ EMEA conference in Basel, Switzerland, Dr Alexander Brannan from the University of Manchester, and Gary Spinks of Security Fibres UK, presented advances in colour-changing smart materials designed for rapid authentication. This technology addresses key issues in anticounterfeiting by integrating academic research with industrial application.

Linstrom Marangu, Health Tax Specialist from the African Tax Administration Forum (ATAF), has confirmed his participation at the Tax Stamp & Traceability Forum, which takes place from 7-9 April in Cape Town, South Africa.

The authors of the third edition of Tax Stamps & Traceability: A Market Analysis and Technical Update (TSR 3), published by Reconnaissance International in 2020, estimated that there were then ‘about 80 prime contractors for tax stamp programmes around the world’, of which 50 were commercial organisations and 30 state-owned enterprises. Those state-owned entities mainly supplied their own country’s tax stamp requirements, but many were also operating commercially on the open market, albeit primarily supplying regional neighbours.

Oman has announced changes to the implementation timeframe and scope for extending its tax stamp and digital traceability programme to excisable drinks.

Further to our announcement last month of the speakers signed up for this year’s Tax Stamp & Traceability Forum™, from 7-9 April in Cape Town, South Africa, the programme has now been finalised.

Across the tax stamp and traceability sector, several concurrent technologies are forcing change: digitisation, the impact of AI, and the prospect of quantum computing. There is no doubt that, individually, these technologies offer convenience and efficiency, but should we be concerned about the interplay between them and whether they could lead to a new set of threats?

The American Lung Association (ALA) has called for the US Food and Drug Administration (FDA) to propose and finalise regulations to implement track and trace technology on all tobacco products to prevent illicit trade, including counterfeiting and smuggling activities.

Tax stamps have been around since the late 17th century and were originally embossed or impressed on products or documents. Today, they have evolved from simple adhesive labels into sophisticated tools that play a crucial role in revenue protection and tax compliance.

On 27 February 2025, the WHO Framework Convention on Tobacco Control (FCTC) celebrated the 20th anniversary of its entry into force.

Two cannabis businesses in the Canadian province of Alberta – Token Naturals and Plantlife Cannabis – together with US technology company Metrc, are launching a pilot project in Alberta to improve the transparency and safety of cannabis products.

The global security print landscape is undergoing a profound transformation, and, in its wake, there are two extremes of skills shortage.

If you only read media reports, it would be easy to assume that the most significant advances in identity document security stem from digital innovation, with biometric verification, blockchain-based identity management, and digital certificates dominating discussions.

The programme for this year’s Tax Stamp & Traceability Forum (from 7-9 April in Cape Town, South Africa) is shaping up nicely, with some important themes on the agenda. This article describes some of these themes, which will be presented as workshops, standalone papers or panel discussions.

In India, cigarettes are expected to be among the first products to be brought under a track and trace mechanism aimed at curbing tax evasion, following amendments to the Central Goods & Services Tax (GST) Act. Pan masala (a popular chewing mixture) may also be included in the initiative.

One of the features in the final issue of Tobacco Reporter, published in December 2024, described how the Belarusian tobacco industry has been shrouded in secrecy for over a decade.

Following a competitive tender, Smurfit Kappa Security Concepts (SKSC) has been awarded a contract by the Office of the Revenue Commissioners – the Irish government agency responsible for customs and excise – to supply tobacco tax stamps, in the wake of tax increases introduced in 2024 and 2025.

As we enter the new year, the question on our readers’ minds is: what are the significant developments that will shape the industry over the coming 12 months? We asked members of the International Tax Stamp Association (ITSA) to share their perspectives on what could define the year ahead, with predictions covering technological innovations, market expansions and evolving sustainability priorities.

While we are used to seeing informative and dynamic presentations of banknote designs and security features on central bank websites, imagine our surprise when we came across a presentation of tobacco authentication labels on the Swedish Public Health Agency site!

As illicit trade becomes more advanced, how do governments protect their revenues, citizens, and natural resources?

Hong Kong’s new Commissioner of Customs and Excise Chan Tsz-tat has announced that a tax stamp system for tobacco could be introduced in the third quarter of 2026 at the earliest, with a pilot scheme set for mid-2025.

Two independent studies point to the fact that cigarette smokers in Uruguay still prefer illicit cigarettes.

In the February 2024 issue of Tax Stamp & Traceability News™, we described how the International Tax Stamp Association (ITSA) had submitted recommendations1 for a secure and interoperable implementation of the EU Digital Product Passport (DPP) to the European Committee for Standardisation (CEN) and the European Committee for Electrotechnical Standardisation (CENELEC).

There is a common belief that traceability solutions alone will eliminate counterfeiting and simplify product authentication. However, while item-level traceability enhances product transparency, the most commonly adopted technologies come with vulnerabilities, especially in terms of authentication.