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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Increasing Revenue and Curbing Illegal Liquor in India
Presented by:Manoj Kochar
PresidentAuthentication Solution Providers’ Association (Formerly known as Hologram Manufacturers
Association of India)
Tax Stamp Forum, Dubai: 16th September 2014
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
About ASPA
• Authentication Solution Providers’ Association (Formerly known as Hologram Manufacturers Association of India)
• Formed in 1998, renamed as ASPA on 5th July 2014
• Has a strength of 26 Manufacturing, 12 Associate and 5 Honorary members
• Mission : To provide a platform where authentication technology providers can converge and collaborate to develop customised cutting edge authentication solutions for their customers
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Indian Tax System
Central (Federal) Government
Custom Duties
Income Tax
Manufacturing Tax (Central Excise)
Liquor Excise
Sales Tax/VAT
Municipal Taxes
State (Province) Government
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Various States in India
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Liquor Tax Stamps currently in use
• The first tax stamp appeared in 1980’s on a thin glassine based paper
• Even today no Tax Stamps at all for some states• The ones that are in the market
Paper based labels with a hologram strip Full OVD hologram label also called HEAL -
Hologram Excise Adhesive Label
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Initial Challenges and Redressal
• High level of initial resistance Does the technology work? Hologram companies’ credibility, capacity? Public acceptance and recognition? Bottlers were not keen to adopt
• Hologram on other government issued documents such as Voters Identity Card, Driving Licence helped
• Positioning – not a panacea but a potent tool to help identification of illicit liquor
• The industry invested to build up capacities• Pilot projects conducted for bottlers• Stress on overt features
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Evolution of HEAL
• The first hologram stripe on a Paper based Tax stamp appeared in 1998
• The first OVD Hologram Excise Adhesive Label (HEAL) appeared in 1999
• Teething Problemso Implementation issues at the Departmental levelo Hologram affixing, Bottler education
• Gradually all the stakeholders realised the benefits, and then gave their wholehearted support
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Technology currently seen on HEAL
• Combination origination techniqueso Classical 2D/3Do Dot Matrixo High resolution Litho
• Substrateso Multi coloured bespoke security Filmso Customised tamper evidence
• Conversiono Demetallizationo Security Inkso Taggantso Serial Numbers
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Technology - Paper based Labels
• Combination origination techniqueso Classical 2D/3Do Dot Matrixo High resolution Litho
• Substrateso Security papers with UV Fibres o Customised tamper evidence
• Conversiono Demetallizationo Security Inkso Intaglio print
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Typical Transaction Cycle for HEAL
• Department invites RFQ; selects vendor• Vendor sets up a Numbering unit under Excise department
supervision• Vendor produces holograms at existing facility and supplies the
HEAL to the Numbering Unit Numbering/Coding under Department supervision
• Supply to bottlers only after specific approval of the Department• Bottlers affix the HEAL• Only the bottles with the HEAL are saleable• HEAL serves as the identifier for public and authorities• Departments conduct awareness campaigns
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© 2014 ASPA (formerly known as HOMAI) www.homai.org
Awareness Campaign in Madhya Pradesh
• Such Posters were put up at most of the liquor vends to create awareness of the HEAL
• Some states also conducted mass media campaign
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Market Coverage
ArunachalPradeshJammu
& Kashmir
HimachalPradesh
Delhi
Assam
Punjab MeghalayaUttrakhand
UttarPradesh
Haryana
SikkimRajasthan Nagalan
dBihar
Jharkhand
ManipurMadhyaPradesh
WestBengal
MizoramGujaratChhattisgarh
Orissa
Maharashtra
Tripura
Goa
Karnataka
Andhra Pradesh
Telangana
Kerala Tamil Nadu
Puducherry
State usingHEAL(12)
State usingPaper based label with OVD (5)
Potential (11)
State usingFilmic label (1)
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Case Study – Tamil Nadu
Reven
ue i
n m
il U
SD
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
(BE)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
402 431 439 483 496 389599 746
9361,119
1,3521,583
1,906
2,343
2,848
3,398
Tamilnadu
HEAL Introduced
All exchange rates frozen as of March 1998
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Case Study – Madhya Pradesh
Reven
ue i
n m
il U
SD
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
(BE)
0
200
400
600
800
1,000
1,200
1,400
1,600
227 252 229165 209 255 280 322 363
435541
693846
1,014
1,193
1,350
Madhya Pradesh
HEAL Introduced
All exchange rates frozen as of March 1998
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Case Study – Uttar Pradesh
Reven
ue i
n m
il U
SD
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
(BE)
0
500
1,000
1,500
2,000
2,500
3,000
383499 526 461
600 581 631 725834 927
1,1091,331
1,579
1,912
2,298
2,735
Uttar Pradesh
HEAL Introduced
All exchange rates frozen as of March 1998
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Am
ou
nt
in m
il U
SD
STATES USING HEAL/OVD ON THEIR TAX STAMPS
STATES NOT USING TAX STAMPS
Tamilnadu Karnataka Uttar Pradesh Madhya Pradesh Bihar West Bengal0
500
1,000
1,500
2,000
2,5002,249
1,941
1,667
913
506 458
Comparison in Revenue Growth From 2005 to 2013
All exchange rates frozen as of March 1998
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Road Ahead
• Practically all the remaining states are at various considering adoption of HEAL/OVD based Tax Stamps
• We believe that by 2016 all the states should have kind of Liquor Tax Stamp in place
• Track and Trace based HEAL
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Implementation of Track and Trace Based System
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
ASPA Role
• Keep an eye on suspicious activities
• Help in conducting raids
• Collect data from the States and process the same
• Publish reports
• Conduct Press campaigns and mobilise public opinion
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Press Clippings
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Conclusion
• Almost 75% of all tax stamps in liquor are OVD hologram Based
• Almost 15 billion tax stamps used every year
• Reduction in cases of illicit liquor - leading to protection of human lives and increase in Government revenue
• OVD Hologram based Tax Stamps WORK!!
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Diverse technologies, common goal.
© 2014 ASPA (formerly known as HOMAI) www.homai.org
Thank You
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