Tax Stamps can Boost Government Finances in Post-COVID World, Says ITSA

In July, an online webinar held by the International Tax Stamp Association (ITSA) brought together 160 stakeholders from around the world to discuss best practices for implementing a tobacco control and revenue-raising programme, against the backdrop of the WHO FCTC Protocol to Eliminate Illicit Trade in Tobacco Products.

The need for such a programme has increased dramatically in the global coronavirus pandemic, which has seen government revenues plummet, deficits rise and debt levels swell to eye-watering proportions. At the same time, fraudulent trade is reported to have accelerated as counterfeiters and perpetrators of organised crime look to capitalise on the mayhem the pandemic has caused.

ITSA said properly implemented tax stamp and traceability programmes could help governments protect and recoup much-needed revenues as they battle to get their public finances back on track.

Juan Carlos Yañez, Chairman of ITSA, said: ‘the pandemic’s strain on national economies and public health make these programmes more important than ever. When implemented correctly, tax stamp and traceability programmes are proven to deter tax fraud, make supply chains more secure, create a level playing field for compliant manufacturers and protect public health, brands and consumer confidence. In addition, most new tax stamp schemes have no upfront implementation costs, so governments don’t have the hefty financial outlay upfront – vital in the current climate when public finances are stretched.