Why Do Some Tax Stamp Programmes Fail?

While many tax stamp programmes in operation today are delivering significant benefits (including increased tax collections), other programmes are not so successful. Why is this?

Examples of failed programmes include those where a request for proposal (RFP) process was started but never completed, or those where a contract was awarded but the programme never launched, or those that were launched but did not realise the intended benefits.

This article looks at why some of these programmes fall short and what can be done to avoid this scenario. But before doing that, there are three ‘givens’ that need to be in place for a programme to be successful:

1. The programme needs to follow a minimum set of best practices. This does not mean that every element of the programme must be world class; it just means the programme should align with best practices.

2. There needs to be an active enforcement system in place, given that technology and enforcement go hand-in-hand. Until a futuristic day when AI-driven robots are running these programmes, we cannot solely rely on technology, no matter how advanced.