holographic tax stamps boost indian excise revenue
DESCRIPTION
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.TRANSCRIPT
© 2013 HOMAI www.homai.org
Holographic Tax Stamps BoostIndian Excise Revenue
Presented by:
Manoj Kochar
President
Hologram Manufacturers Association of India
© 2013 HOMAI www.homai.org
HoMAI
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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
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Indian Tax System
Central Government State Government
Custom Duties Liquor Excise
Income Tax Sales Tax
Manufacturing Tax(Excise)
Municipal Taxes
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Various States in
Delhi
Jammu
& Kashmir
India
ArunachalPradesh
AssamHimachalPradesh
MeghalayaPunjab
HaryanaUttrakhand
UttarPradesh
Sikkim
Rajasthan Nagaland
BiharManipur
MadhyaPradesh
JharkhandWestBengal
MizoramGujarat
Chhattisgarh
OrissaMaharashtra Tripura
GoaAndhra Pradesh
Karnataka
Puducherry
KeralaTamil Nadu
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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
serial number
serial number and a hologram
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Paper labels with
Paper labels with strip
Full OVD hologram label also called HEAL -Hologram Excise Adhesive Label
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Initial Challenges and Redressal
• High level of initial resistance
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Does the technology work?
Hologram companies’ credibility, capacity?
Public acceptance and recognition?
Bottlers were not keen to adopt
• Hologram on other government issued documents suchas 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
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Evolution of HEAL
• Finally….The first hologram stripe on a Tax stampappeared 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
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Technology currently seen on HEAL
• Combination origination techniques
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Classical 2D/3D
Dot Matrix
High resolution Litho
• Substrates
– Multi coloured bespoke security
– Customised tamper evidence
Conversion
Films
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Demetallization
Security Inks
Taggants
Serial Numbers
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Typical Transaction Cycle for HEAL
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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
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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
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Market Coverage
ArunachalPradeshJammu
& Kashmir
Himachal
Pradesh
Delhi
Assam
Punjab MeghalayaUttrakhand
Uttar
Pradesh
HaryanaState usingHEAL(12) Sikkim
Rajasthan Nagaland
Bihar
JharkhandManipur
MadhyaPradesh
State usingPaper based
label (5)
WestBengal
MizoramGujarat
Chhattisgarh
OrissaMaharashtra Tripura
Potential (11)Goa
KarnatakaAndhra Pradesh
Puducherry
Kerala Tamil Nadu
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Case Study – Tamil NaduRevenue in M
illion
Euro
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Case Study – Madhya PradeshRevenue
inM
illion
Euro
Holo
gra
mIn
troduced
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Case Study – Uttar PradeshRevenue in M
illion
Euro
Holo
gra
mIn
troduced
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Increase in revenue from2004-05 to 2011-12
Revenue in M
illion
Euro
States Not Using HologramsStates Using Holograms
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Road Ahead
• Practically all the states are at various
considering adoption of HEAL
stages of
• We believe that by 2015 all the states should have
kind of Liquor Tax Stamp in place
some
• Track and Trace based HEAL
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Implementation of Track and TraceBased System
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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
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Press Clippings
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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!!
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Thank You
For more information, please contact:
Hologram Manufacturers Association of India21-Ground Floor, Devika Tower 6Nehru Place, New Delhi 110019Telefax: +91-11-41617369Email: [email protected]: www.homai.org