COMING SOON - the 2nd edition of Tax Stamps: a Technical Study and Market Report

Background to the 2nd Tax Stamp Report

In late 2007 Reconnaissance International published Tax Stamps: a Technical Study and Market Report , the first study of its kind to examine and analyse the evolution and implementation of tax stamp regimes around the world. 

But much can change in the space of just a few years. And due to demand, following the success of the 1st edition, the 2nd report is now underway. While, the 1st edition was aimed primarily at suppliers of paper-based tax stamps applied to tobacco products and alcoholic beverages, the scope of the 2nd edition will be broadened to reflect the interests of all stakeholders with a vested interest in revenue collection from duties payable on tobacco and alcohol. These include legislators, lawyers responsible for drafting legislation, economists with budgetary and fiscal responsibilities and investigation and enforcement agencies, as well as tobacco and alcohol manufacturers and distributors, and vendors of tax stamp systems and technologies. 

Increasingly, the key functions of any tax stamp, whatever form it takes, is to provide fiscal verification (ie that tax has been paid), supply chain visibility and product authentication. As a result, the demands of tax stamps have become considerably more complex and there is now considerable debate as to whether physical stamps are able to meet these requirements versus digital systems. The tobacco industry itself is strongly proposing the abolition of physical stamps in favor of digital marking systems which are supposedly capable of authenticating and tracking the products. The report will report and analyse the factors in this debate and the fundamental differences between authentication solutions versus purely track & trace systems to inform those on both sides of the debate as to the capabilities and limitations of both approaches. 

There will be a greater focus, too, on the regional landscape. While the basic principles of tax stamps are universal, each country has its own specific conditions and requirements that result in differences, in some cases fundamental, in how tax stamps are specified and implemented. As well as outlining the basic principles, the report will examine in depth some of these differences - notably in the unique yet rapidly-developing US market, as well as other countries with state as opposed to federal schemes. 

The report will also examine the proliferation of alternative nicotine delivery products and even marijuana, and the revenue opportunities for, as well as the implementation of marking schemes (digital as opposed to stamp-based) in some countries to extend the collection of excise revenue to non-alcoholic beverage, mineral waters and other consumable products.   

To be published in early 2012, this 100-page report will provide invaluable insight into how governments can develop effective tax revenue collection regimes through the use of tax stamps, and how suppliers of components, products and systems can both drive forward the market for tax stamps, and benefit from the growing opportunities these provide. 

Scope of the 2nd Tax Stamp Report

 Introduction

• Developments since the publication of the first Tax Stamp Report in 2007
• Executive summary 

Background to the Use of Tax Stamps

• factors driving their deployment - regulation, consumption, taxation, the illicit trade;
• the political, economic and fiscal landscape;
• industry agreements and directives;
• regional variations;
• the spread of programmes from tobacco and alcohol to beverages and other excisable products.

How Tax Stamps Work

• how tax stamp programmes typically operate;
• the different 'stakeholders' from specification through production to distribution and   deployment, including regulators, revenue authorities, investigation and enforcement agencies, tobacco and alcohol manufacturers, distributors and wholesalers, suppliers of tax stamp components and solutions;
• benefits as revenue generators and a means of controlling illicit and counterfeit products. 

Technologies for Production, Application and Authentication

• the evolution of the tax stamp, from a simple printed item to a complex, multi-layered security device with track & trace capability;
• different tax stamp formats, printing techniques, materials, overt and covert security features
• packaging and labelling requirements and the integration and application of stamps;
• methods and techniques for application - wet glue adhesive, pressure sensitive and fusion, and latest developments ;
• numbering and coding technologies for unique item identification and supporting systems for verification, authentication and track & trace.

The Digital Revolution

• comparison of physical stamps versus digital marking schemes;
• track & trace and supply chain security;
• experiences gained so far;
• learning from other industries.

Control, Investigation and Enforcement

• effective legislative frameworks and compliance;
• the role of investigators and tools for the job;
• training and education.

The Global Use of Tax Stamps

• an updated list of all countries using tax stamps;
• features, technologies, systems deployed;
• specifiers, issuers and producers;
• state/regional versus national/federal programmes;
• annual consumption and future requirements;
• subsections on regions.

Case Studies

A series of reports on several different countries, detailing the tax stamp environment, the adoption and/or upgrade of tax stamps, different regimes and systems, the increasing use of advanced authentication and track & trace technologies, ROI and the benefits that have accrued to governments.

Conclusion

• the role of technology;
• the emergence of alternative systems for fiscal verification, track & trace and authentication;
• projected volumes and market opportunities.

Appendix

In addition to the more detailed case studies, the appendix will feature a profile of each country in terms of demographics, consumption, and relevant revenue authorities.