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Track & Trace systems apply to three large groups of supply chain participants: - Product manufacturers and importers who introduce goods into circulation in the country. - Distributors and wholesale companies who distribute goods domestically. - Retailers—who sell goods to the end consumers. Product marking or labeling mainly affects only the first group of participants.
When introducing excise taxes, the state wants to distinguish between legitimate commodities—for which it levies taxes—and illicit goods. Product authenticity verification technologies and solution can help in this situation. A business invests in research, development, and marketing of products, and wants protection from counterfeiters.
Tax authorities often introduce the concept of goods taxed at preferential rates, for example, if they are socially important. To understand whether a reduced rate is valid, they must identify the stock keeping unit and cataloged. By introducing online cash registers, tax authorities receive real-time sales data, but they also want to extract information about prices and consumption volumes from it. Of course, the tax authorities could process a non-standardized text string and try to get relevant information. However, without standards for describing stock keeping units and with a vast number of taxpayers using "Product 1" or "Product 2" as the product description, this approach is a dead end.
The excise tax appears straightforward: select a rate and raise it to gather more money for the state budget. However, it is very difficult to optimize the collection of excise taxes and reduce the excise tax gap. These objectives require in-depth analysis, considering many variables, and consistently implementing a lot of initiatives that will really help achieve the desired goal.
Digital Tax