Holographic tax stamps boost indian excise revenue
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Holograms are used globally by excise department to increase government revenue as well as to stop tax evasion. As of 2007, more than 27 countries (46% of total using tax stamp) are using on their liquor stamps. The presentation explained importance of holographic excise adhesive label (HEAL) and statistics that its use has resulted in an impressive increase in revenue whenever it has been used.
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Holographic tax stamps boost indian excise revenue
- 1. Holographic Tax Stamps Boost Indian Excise Revenue Presented by: Manoj Kochar President Hologram Manufacturers Association of India © 2013 HOMAI www.homai.org
- 2. HoMAI • Hologram Manufacturers Association of India • Formed in 1998 • Has a strength of 27 Manufacturing, 7 Associate and 5 Honorary members • Hologram Roster started in Aug 1999: in 2009 was merged with the IHMA’s HIR in the larger interests of the hologram industry © 2013 HOMAI www.homai.org
- 3. Indian Tax System Central Government State Government Custom Duties Liquor Excise Income Tax Sales Tax Manufacturing Tax (Excise) Municipal Taxes © 2013 HOMAI www.homai.org
- 4. Various States in India Delhi Arunachal Pradesh Jammu & Kashmir Assam Himachal Pradesh Punjab Haryana Meghalaya Uttrakhand Uttar Pradesh Rajasthan Sikkim Nagaland Bihar Gujarat Madhya Pradesh Jharkhand West Bengal Chhattisgarh Orissa Maharashtra Goa Manipur Mizoram Tripura Andhra Pradesh Karnataka Puducherry Kerala Tamil Nadu © 2013 HOMAI www.homai.org
- 5. Liquor Tax Stamps currently in use • The first tax stamp appeared in 1980’s on a thin glassine based paper • Even today no Tax Stamps at all for some states • The ones that are in the market – Paper labels with serial number – Paper labels with serial number and a hologram strip – Full OVD hologram label also called HEAL Hologram Excise Adhesive Label © 2013 HOMAI www.homai.org
- 6. Initial Challenges and Redressal • High level of initial resistance – Does the technology work? – Hologram companies’ credibility, capacity? – Public acceptance and recognition? – Bottlers were not keen to adopt • Hologram on other government issued documents such as Voters Identity Card, Driving Licence helped • Positioning – not a panacea but a potent tool to help identification of illicit liquor • HoMAI Members invested to build up capacities • Pilot projects conducted for bottlers • Stress on overt features © 2013 HOMAI www.homai.org
- 7. Evolution of HEAL • Finally….The first hologram stripe on a Tax stamp appeared in 1998 • The first OVD Hologram Excise Adhesive Label (HEAL) appeared in 1999 • Teething Problems – Implementation issues at the Departmental level – Hologram affixing, Bottler education • Gradually all the stakeholders realised the benefits, and then gave their wholehearted support © 2013 HOMAI www.homai.org
- 8. Technology currently seen on HEAL • Combination origination techniques – Classical 2D/3D – Dot Matrix – High resolution Litho • Substrates – Multi coloured bespoke security Films – Customised tamper evidence • Conversion – – – – Demetallization Security Inks Taggants Serial Numbers © 2013 HOMAI www.homai.org
- 9. Typical Transaction Cycle for HEAL • Department invites RFQ; selects vendor • Vendor sets up a Numbering unit under Excise department supervision • Vendor produces holograms at existing facility and supplies the HEAL to the Numbering Unit • Numbering/Coding under Department supervision • Supply to bottlers only after specific approval of the Department • Bottlers affix the HEAL • Only the bottles with the HEAL are saleable • HEAL serves as the identifier for public and authorities • Departments conduct awareness campaigns © 2013 HOMAI www.homai.org
- 10. Awareness Campaign in Madhya Pradesh • Such Posters were put up at most of the liquor vends to create awareness of the HEAL • Some states also conducted mass media campaign © 2013 HOMAI www.homai.org
- 11. Market Coverage Jammu & Kashmir Punjab State using HEAL(12) Delhi Assam Himachal Pradesh Meghalaya Uttrakhand Haryana Uttar Pradesh Rajasthan Arunachal Pradesh Sikkim Nagaland Bihar State using Paper based label (5) Gujarat Madhya Pradesh Manipur Jharkhand Chhattisgarh Orissa Maharashtra West Bengal Mizoram Tripura Potential (11) Goa Karnataka Andhra Pradesh Puducherry Kerala Tamil Nadu © 2013 HOMAI www.homai.org
- 12. Revenue in Million Euro Case Study – Tamil Nadu © 2013 HOMAI www.homai.org
- 13. Hologram Introduced Revenue in Million Euro Case Study – Madhya Pradesh © 2013 HOMAI www.homai.org
- 14. Hologram Introduced Revenue in Million Euro Case Study – Uttar Pradesh © 2013 HOMAI www.homai.org
- 15. Revenue in Million Euro Increase in revenue from 2004-05 to 2011-12 States Using Holograms States Not Using Holograms © 2013 HOMAI www.homai.org
- 16. Road Ahead • Practically all the states are at various stages of considering adoption of HEAL • We believe that by 2015 all the states should have some kind of Liquor Tax Stamp in place • Track and Trace based HEAL © 2013 HOMAI www.homai.org
- 17. Implementation of Track and Trace Based System © 2013 HOMAI www.homai.org
- 18. HoMAI’s Role • Keep an eye on suspicious activities • Help in conducting raids • HoMAI collects data from the States and processes it • Publish reports • Conduct Press campaigns and mobilise public opinion © 2013 HOMAI www.homai.org
- 19. Press Clippings © 2013 HOMAI www.homai.org
- 20. Conclusion • Almost 75% of all tax stamps in liquor are OVD hologram based • Almost 15 billion tax stamps used every year • Reduction in cases of illicit liquor - leading to protection of human lives and increase in Government revenue • OVD Hologram based Tax Stamps WORK!! © 2013 HOMAI www.homai.org
- 21. Thank You For more information, please contact: Hologram Manufacturers Association of India 21-Ground Floor, Devika Tower 6 Nehru Place, New Delhi 110019 Telefax: +91-11-41617369 Email: info@homai.org Website: www.homai.org © 2013 HOMAI www.homai.org