De La Rue Authentication, delivering revenue protection and more
In the wake of growing economic risks and rising inflation, Governments will be considering how they can address national balance sheets. According to the IMF public and private debt has reached new record highs and "countries will face increasingly difficult policy trade-offs as they tackle rising inflation, heightened macro-financial risks, and slowing growth." Digital Tax Stamp schemes enable governments to optimize collection of excise revenues and to close tax gaps caused by illicit trade.
The World Bank stated that there are annual losses of between $40 billion and $50 billion from tobacco alone through illicit trade. Increased tax receipts help stabilise economies, providing security for jobs, trade and the health and wellbeing of citizens and provide wider benefits by making a country more attractive to foreign direct investment in manufacturing.
The World Economic Forum values illicit trade as a $2.2 trillion industry that undermines excise revenues, damages business, harms consumers and benefits criminals. An OECD study published in 2019 (Trends in Trade in Counterfeited and Pirated Goods) estimated that counterfeit and pirated goods accounted for more than 3% of global trade, a value in excess of $500bn based on customs seizure data; this value is significantly higher if it includes genuine products traded illicitly.
De La Rue Authentication works with countries to implement projects that deliver excise revenue certainty, thereby protecting nations and their citizens from the impact of illicit trade.
Our Digital Tax Stamp solutions operate by linking unique identifiers to products, enabling the full traceability of genuine goods and the collection of tax revenues. For tobacco, the solutions are compliant with the requirements of the World Health Organisation’s Framework Convention of Tobacco Control, Illicit Trade Protocol.
Engaging Stakeholders to Deliver Certainty
By engaging with all stakeholders, providing advice, support and project management across government and industry, De La Rue Authentication provides expert security solutions that are relevant and achievable. This means early engagement across a global and diverse set of actors, from the Ministries of Finance or Tax Authorities implementing the scheme, to Customs Agencies, Health Administrations, field enforcement teams, standards organisations, importers, manufacturers, supply chain agents and the general public.
Enhancing Data and Security
- Secure marking of products
- Supply-chain traceability and data management
- Product authentication and inspection
Enforcing Measurable Results
Through the verification of the production volume of the excise goods, governments can confirm that the collected excise taxes match with the genuine volume of goods manufactured and imported. This must work in conjunction with inspections and law enforcement.
De La Rue Authentication has helped reduce illicit trade across the globe. In one country, the illicit trade in tobacco products dropped from 68% to an estimated 5%, while tax revenues from products rose to 15 times its previous level – becoming the second highest source of national income, after fuel.
De La Rue focuses on getting results that deliver for every one of its customers. This means implementing tailored revenue protection solutions on time and to budget. With over 200 years of experience, De La Rue has developed a business record and reputation that nations can rely on.