What do Kenya, Georgia and Ecuador have in common?
These 3 countries are among those having successfully deployed secure excise tax stamps programs powered by SICPA technologies and are extensively mentioned in this just published, must-read World Bank report. While reviewing country-specific experiences in confronting illicit tobacco trade, the 706-pages report gives strong arguments in favor of secured traceability solutions. It also highlights the leading role SICPA plays in this area, including detailed technical description of the solutions deployed.
Key takeaways:
In order to confront illicit trade in tobacco products, the World Bank recommends specific actions (See Box 2, page 655 of the report):
- Deploying secure excise tax stamps and other product markings to facilitate enforcement and tax collection.
- Establishing effective track-and-trace systems to follow tobacco products through the supply chain from production of import to sale to consumers.
- Deploying effective enforcement teams equipped with automated reporting devices, to reduce human discretion in tobacco tax administration. This feature played a major role in improving the level of enforcement in Kenya and Georgia.
The report also underlines that while secure excise stamps plays a crucial role, they should be deployed in conjunction with downstream verification confirming that cigarettes packs have tax stamps and are authentic so as to prevent tax evasion.
Read the full report here.
