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Chander S Jeena, Secretary, ASPA
Tax Stamp Forum 2019, Budapest, Hungary
Trends and Developments in Tax Stamps in India
Key Learning
Agenda
Part 1 : Introduction & Overview Tax Stamp in India
PART 2: HIT & MISSES, KEY LEARNINGS, TRENDS & DEVELOPMENTS
Part 3 : Conclusion & learning 
Part 2 :  Case Studies 
OVERVIEW
TAX STAMP
IN INDIA
Part A
Regulations in India
Important products for Tax Stamp in India
Union or Federal
Regulation
Govt. of India ratifies
the FCTC protocol last
year
Tobacco
No Regulation yet
Legal in few States
Future prospects
Cannabis
STATE EXCISE LAWS
Important source of revenue for
State Excise Department.
Post GST implementation in India
infact one of the biggest source of
revenue.
Alcohol
First tax stamp
introduced in India
based on glassine
based paper
Timeline - Evolution of Tax Stamp in India
1980-90's
First full polyester
based tax stamp
introduced
1998-99
New overt & covert features
for authentication &
traceability
(Taggant, Mirror, Speaking
feature & QR Code
2015-16
Types of Tax Stamps in India
Full Polyester based
security hologram Tax
Stamp
Hybrid Label (Paper
based label with
holographic
components)
Thermal Transfer
Label
Paper label Tax Stamp
Key Technologies
Traceability
Technologies
Overt Authentication
Technologies
Covert
Authentication
Technologies
Datamatrix code, Bar Code, SMS,
Serialisation, Laserjet numbering
Taggant, Microtext, Guilloche
pattern, DNA, Signatures,
Security Hologram, Intaglio, Mirror,
Channels effects etc.
Usage of Tax stamp
in India - Liquor
75% 2/3rd of total tax
stamps used in India
(75% are polyester
based) while rest (25%)
are paper label with or
without holographic
component
Usage Category
90% As on date, more than
23 States & UT are
using Tax Stamps
No of States (23)
Market size - Current & Prospects
23.5
5.5
100
Tax Stamps in India (Billion)
Current Liquor Tax Stamp Potential Liquor Tax Stamp Potential Tobacco Tax Stamp
0
10
20
30
40
50
60
70
80
90
100
110
130
Billion
Estimated future
requirement
Source: ASPA / Tax Stamp News
Key Players in India Tax Stamp Business
Commercial producers
Central & State Government producers
75%
More than 75%
of total current
supply is
provided by
private sector
TAX STAMP
PROVIDERS
CASE STUDYPart B
Introduced plain barcode labels as
part of its Excise Supply Chain
Information Management System –
an initiative for enhancing excise
revenues and controlling illicit
flows of spirits, wine and beer into
the territory
CASE STUDY 1
2013
Post implementation smuggling
activities increased ( 9 officials were
held allegedly caused an estimated
loss of INR 25 billion ($365 million) to
the exchequer. Criminal cases involving
forged barcodes on bottles of foreign
liquor brands were reported.
2015
2018-19
Two big beverage
manufacturer were
banned for
alleged tax evasion
Sources: Business Today, Mail Online India, Tax Stamp & Traceability News
6,619
124,666
191,258
45,234
119,546
200,611
96
23,672
43,571
Liquor seized in bottles
Crackdown by Excise Dept
FL IMFL CL
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
220,000
2017-18 2018-19
2019-20 (till June 5)
Replace polyester based
security hologram with
plain BOPP label
CASE STUDY 2
2018
More than 90
people died as a
result of
consuming
spurious liquor
Feb 2019
More than 25,000 litres of
rectified spirit (ethanol, 60 per
cent concentration) has been
seized from the spot under
Badalpur police station area.
Ten people have been arrested
Feb 2019
Results:
Increased in inter State
Smuggling, as both are
nearby State and have
almost similar kind of label.
Conclusion & Learning
1. Approach towards Tax Stamps 
(Point of consideration, collaboration with global & national trade
association to implement Tax Stamp program)
2. Combination of technologies
3. Ethical vendor & control over Tax stamps
Material security, right mix of authentication technologies
with traceability
Product specification & Standards
ITSA & ASPA
ISO & GS1
Standards
Thank You 

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Trends and Developments in Tax Stamps in India

  • 1. Chander S Jeena, Secretary, ASPA Tax Stamp Forum 2019, Budapest, Hungary Trends and Developments in Tax Stamps in India Key Learning
  • 2. Agenda Part 1 : Introduction & Overview Tax Stamp in India PART 2: HIT & MISSES, KEY LEARNINGS, TRENDS & DEVELOPMENTS Part 3 : Conclusion & learning  Part 2 :  Case Studies 
  • 4. Regulations in India Important products for Tax Stamp in India Union or Federal Regulation Govt. of India ratifies the FCTC protocol last year Tobacco No Regulation yet Legal in few States Future prospects Cannabis STATE EXCISE LAWS Important source of revenue for State Excise Department. Post GST implementation in India infact one of the biggest source of revenue. Alcohol
  • 5. First tax stamp introduced in India based on glassine based paper Timeline - Evolution of Tax Stamp in India 1980-90's First full polyester based tax stamp introduced 1998-99 New overt & covert features for authentication & traceability (Taggant, Mirror, Speaking feature & QR Code 2015-16
  • 6. Types of Tax Stamps in India Full Polyester based security hologram Tax Stamp Hybrid Label (Paper based label with holographic components) Thermal Transfer Label Paper label Tax Stamp
  • 7. Key Technologies Traceability Technologies Overt Authentication Technologies Covert Authentication Technologies Datamatrix code, Bar Code, SMS, Serialisation, Laserjet numbering Taggant, Microtext, Guilloche pattern, DNA, Signatures, Security Hologram, Intaglio, Mirror, Channels effects etc.
  • 8. Usage of Tax stamp in India - Liquor 75% 2/3rd of total tax stamps used in India (75% are polyester based) while rest (25%) are paper label with or without holographic component Usage Category 90% As on date, more than 23 States & UT are using Tax Stamps No of States (23)
  • 9. Market size - Current & Prospects 23.5 5.5 100 Tax Stamps in India (Billion) Current Liquor Tax Stamp Potential Liquor Tax Stamp Potential Tobacco Tax Stamp 0 10 20 30 40 50 60 70 80 90 100 110 130 Billion Estimated future requirement Source: ASPA / Tax Stamp News
  • 10. Key Players in India Tax Stamp Business Commercial producers Central & State Government producers 75% More than 75% of total current supply is provided by private sector TAX STAMP PROVIDERS
  • 12. Introduced plain barcode labels as part of its Excise Supply Chain Information Management System – an initiative for enhancing excise revenues and controlling illicit flows of spirits, wine and beer into the territory CASE STUDY 1 2013 Post implementation smuggling activities increased ( 9 officials were held allegedly caused an estimated loss of INR 25 billion ($365 million) to the exchequer. Criminal cases involving forged barcodes on bottles of foreign liquor brands were reported. 2015 2018-19 Two big beverage manufacturer were banned for alleged tax evasion Sources: Business Today, Mail Online India, Tax Stamp & Traceability News 6,619 124,666 191,258 45,234 119,546 200,611 96 23,672 43,571 Liquor seized in bottles Crackdown by Excise Dept FL IMFL CL 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 220,000 2017-18 2018-19 2019-20 (till June 5)
  • 13. Replace polyester based security hologram with plain BOPP label CASE STUDY 2 2018 More than 90 people died as a result of consuming spurious liquor Feb 2019 More than 25,000 litres of rectified spirit (ethanol, 60 per cent concentration) has been seized from the spot under Badalpur police station area. Ten people have been arrested Feb 2019 Results: Increased in inter State Smuggling, as both are nearby State and have almost similar kind of label.
  • 14. Conclusion & Learning 1. Approach towards Tax Stamps  (Point of consideration, collaboration with global & national trade association to implement Tax Stamp program) 2. Combination of technologies 3. Ethical vendor & control over Tax stamps Material security, right mix of authentication technologies with traceability Product specification & Standards ITSA & ASPA ISO & GS1 Standards