Regulated and Security
Excise Programs for Governments
Protecting government revenues and consumer safety.
Illicit trade is on the rise, undermining tax revenues and often public safety. As such, governments need trusted partners to deploy secure and scalable excise programs.
In the face of mounting demands on government spending and strained budget deficits, revenue authorities are under increasing pressure to raise and protect excise revenues. At the same time, tobacco, alcohol, and sugar are some of the products that are being targeted with controls for public health reasons, including 85 countries now having implemented indirect taxes on sugar. But with 450 billion contraband cigarettes sold each year and one in four alcoholic drinks now thought to be counterfeited, assuring the collection of excise duties is not simple.
Governments lose around $40 billion annually in tax revenues to illicit tobacco.
International initiatives and legislation to curb tobacco consumption are now well progressed. The Framework Convention on Tobacco Control (FCTC) from the World Health Organization (WHO) and the EU Tobacco Products Directive (EU TPD) provide clear guidance on the tracing of tobacco throughout the supply chain, as well as the security considerations and transparency characteristics that bring integrity to such programs.
Implementing an excise program involves an integrated and multi-partner approach.
Meeting the technical, legislative, and security requirements of excise schemes is just the start. Key stakeholders across both government and industry must be addressed from the outset to ensure a successful implementation. Multiple production lines and very high product volumes pose practical challenges, and the additional risk of unauthorized activity within manufacturing or distribution requires a system that is resilient to abuse.
