Governments are extending tax collection programmes beyond traditional luxury products such as tobacco, wine and spirits to finance post-pandemic economic recovery and health care programmes. Examples of these new markets are soft drinks, beer and water, to name a few.
While physical tax stamp technology has been used to address traditional market requirements using track and trace systems and labels and enhanced security features, their application to new markets may become challenging due to several reasons.
First, products such as beer and soft drinks are less expensive than luxury goods such as tobacco and spirits. This makes manufacturers more price-sensitive and requires an optimised project cost.
Second, production line speeds are faster and labeling products may reduce the line performance.
Last but not least, product shapes and colours are variables and adding labels to the same production line is challenging. It may also raise some concerns related to the product brand.
Digital tax stamps can be an interesting alternative to physical tax stamps and allow us to overcome some of the limitations of physical stamps. In this presentation, we discuss various challenges related to using digital tax stamps directly printed on products. We also present a novel approach involving AI-based security features that allow new markets to reduce implementation cost, keep the line performance and open the door to new opportunities towards an intelligent supply chain.