In India, security holograms are extremely relevant device for authentication and revenue protection. Almost, 22 billion tax stamps are used per annum in India protecting tax revenue worth approximate INR 600 billion. The presentation will give you an overview of holographic tax stamps trends and developments in India. Most of the tax stamps used in India fall into three categories: full polyester-based security holograms; paper labels with a holographic portion; and plain paper or BOPP-based labels.The vast majority of stamps used, however, are full polyester-based security holograms, which are quite unlike the paper-based variety mainly preferred in the rest of the world.

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Recent Trends and
Developments in Holographic
Tax Stamps in India
Presented by:
Chander S Jeena
Secretary
Authentication Solution Providers’ Association
Holography Conference, Warsaw: 30th November 2016

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Agenda
 About ASPA
 History
 Types
 Usage Trend
 Current Status
 Production
 Demand & Volume
 Technology
 Security Features
 Recent Technological Developments
 Challenges
 Future Opportunities
 Conclusion

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About ASPA
 Authentication Solution Providers’ Association (ASPA), previously known
as HoMAI (Hologram Manufacturers Association of India)
 Founded in 1998, non-profit organization representing authentication
solution providers.
 Objective is to curb the menace of counterfeiting by promoting the
usage of authentication solutions in interest of consumer and brand
protection.
 Works closely with global authorities in various continents and countries
such as IHMA, ITSA at global level. In India working with FICCI
Committee against counterfeiting and smuggling, CII, ACMA and
ASSOCHAM.
 More than 50 member companies across the globe providing diversified
anti-counterfeiting have join hands with us (including physical and digital
authentication solutions providers)

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HISTORY
1980’s First tax stamp introduced in India based on glassine
based paper
1998-99 Upgraded to first Holographic Paper based and later
to full Polyester based hologram tax stamp
2000-2010 Many other States (Provinces) adopted tax stamps
The first tax stamps was adopted by one of States (Provinces) in 1980’s for liquor
application to enhance excise revenue and curb illicit liquor. It was produced on a thin
glassine based paper. Later in 1998-99, same State upgraded its tax stamp to first
paper based holographic tax stamp, which attracted other States in India and several
other states also adopted the same.

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TYPES OF TAX STAMPS IN INDIA
1 Polyester based security hologram tax stamp also called
Hologram Excise Adhesive Label
2 Paper based tax stamp with or without holographic
component
3 BOPP based tax stamp
In India, tax stamps are classified in three categories; a) polyester based security
hologram and b) paper based excise label with or without holographic component and
BOPP based label.

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EXAMPLE 1
Full Polyester Based Hologram Tax Stamp
The holographic stamps are produced in labels of different sizes, of around 15mm wide and between 60-80mm long.
They are also produced in different colour foils, representing the various liquor groups (i.e. Indian-made foreign liquor,
country liquor, beer, wine and imported foreign liquor). The stamps carry variable information printed with different
coding techniques that comprise sequential numbers as well as specific data. The stamps are equipped with customised
tamper-evident features. Any attempts to remove them will result in the variable text on the stamp being partially left
behind on the liquor bottle or pouch.

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EXAMPLE 2
Paper based with holographic component
The paper based tax stamp with holographic component are comes in sizes of
14 mm x 100 mm and carries 14 mm x 14 mm holographic component. The
hologram part incudes features such as multi-channel effect, concealed images,
kinetic effect, guilloche pattern, covert laser readable image, micro letter and
commissioner signature in invisible ink.

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EXAMPLE 3
Paper based
It is a paper based label, 15mm x 75 mm and will
be of different colours for different variants. The
colour categorisation will changes in every quarter.
The security labels have specific colours based on
the drink and an inscription of JH followed by a 10-
digit special alphanumerical code, much like the
vehicle chassis number. With the naked eye, the
colour of the label, the inscription JH and the
numbers would be seen. But, to verify the
authenticity of the label on the bottle on sale, each
label will also consist of a computerised signature of
the excise commissioner, the authorised signatory,
which can only have been seen in ultraviolet light.

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EXAMPLE 4
Plain BOPP based
The top coat is highly receptive to
thermal printing as it is having white
matt finish with ultra delaminable
film. The total caliper of material is
between 0.105mm plus minus 10%.
This product can be printed in the
usual printing technologies including
water-based flexo, letter press, UV-
Screen and thermal transfer; for
variable information printing, thermal
transfer and inkjet printing can be
used

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Current Status of holographic tax Stamp in India

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USAGE TREND
Year Security
hologram
Paper
Based
Label
Paper
based
Label +
Hologram
Plain
BOPP
Label
Total
1998 0 0 1 0 1
2002 2 2 0 0 4
2006 5 2 0 0 7
2010 11 0 3 0 14
2014 13 0 6 1 20
2016* as
on date
16 1 5 1 23

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TAX STAMP PRODUCTION
Annual Volumes 22 billion
Annual Growth Rate 12-15%
Commercial Producers (Paper based) 3
Commercial Producers (Hologram) 8
Issuing authorities 29+7
*All commercial producers are proud ASPA members. In fact, one of our member
companies was the first to introduced holographic tax stamp in India.

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Recent Technological Developments
New features for Authentication
New Overt Features : Adoption of non-holographic based
features such as Mirror. It provides an instant visual
authentication tool for the public.
New Covert Features : Taggant offering a dedicated covert
tool for enforcement authorities.
Voice based Features : Another features that is gaining
popularity in India is a voice based feature. A special reader is
used to scan the feature which is incorporated into a particular
area of the hologram. Upon scanning, the feature tells the
inspector whether the hologram is genuine.
IT based Features: Integration with IT Technologies (Mobile &
SMS Based)

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Challenges of Holographic Tax Stamp in India
Lack of awareness (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 License helped.
• Positioning – not a panacea but a potent tool to help identification
of illicit liquor
• ASPA Members invested to build up capacities
• Pilot projects conducted for bottlers
• Stress on overt features

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Future Growth & Conclusion
• Practically all the states are at various stages of considering
adoption of HEAL and almost 75% of all tax stamps in liquor are
hologram.
• Almost 22 billion tax stamps used every year. We believe that
by 2020 all States in India have some kind of Liquor Tax Stamp
in place. ASPA is in continuous follow up with Central
Government for Cigarette Tax Stamps.

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Thank You
For more information, please contact
Chander S Jeena,
Secretary
Authentication Solution Providers’ Association
21-Ground Floor, Devika Tower 6,
Nehru Place, New Delhi 110019, India
Cell: +91-9818971116
Email: info@aspaglobalcom
Website: www.aspaglobal.com
Disclaimer: Presentations are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and
opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of the
Authentication Solution Providers 'Association (ASPA). ASPA does not endorse or approve, and assumes no responsibility for, the content, accuracy or
completeness of the information presented. The data used here are from various published and electronically available primary and secondary sources.
Despite due diligence the source data may contain occasional errors. In such instances, ASPA would not be responsible for such errors.