Holograms are used globally by excise department to increase government revenue as well as to stop tax evasion. As of 2007, more than 27 countries (46% of total using tax stamp) are using on their liquor stamps. The presentation explained importance of holographic excise adhesive label (HEAL) and statistics that its use has resulted in an impressive increase in revenue whenever it has been used.

1. Holographic Tax Stamps Boost
Indian Excise Revenue
Presented by:
Manoj Kochar
President
Hologram Manufacturers Association of India
© 2013 HOMAI www.homai.org

2. HoMAI
• Hologram Manufacturers Association of India
• Formed in 1998
• Has a strength of 27 Manufacturing, 7 Associate and 5
Honorary members
• Hologram Roster started in Aug 1999: in 2009 was
merged with the IHMA’s HIR in the larger interests of the
hologram industry
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3. Indian Tax System
Central Government
State Government
Custom Duties
Liquor Excise
Income Tax
Sales Tax
Manufacturing Tax
(Excise)
Municipal Taxes
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4. Various States in India
Delhi
Arunachal
Pradesh
Jammu
& Kashmir
Assam
Himachal
Pradesh
Punjab
Haryana
Meghalaya
Uttrakhand
Uttar
Pradesh
Rajasthan
Sikkim
Nagaland
Bihar
Gujarat
Madhya
Pradesh
Jharkhand
West
Bengal
Chhattisgarh
Orissa
Maharashtra
Goa
Manipur
Mizoram
Tripura
Andhra Pradesh
Karnataka
Puducherry
Kerala
Tamil Nadu
© 2013 HOMAI www.homai.org

5. 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 labels with serial number
– Paper labels with serial number and a hologram strip
– Full OVD hologram label also called HEAL Hologram Excise Adhesive Label
© 2013 HOMAI www.homai.org

6. 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
• HoMAI Members invested to build up capacities
• Pilot projects conducted for bottlers
• Stress on overt features
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7. Evolution of HEAL
• Finally….The first hologram stripe on a Tax stamp
appeared in 1998
• The first OVD Hologram Excise Adhesive Label (HEAL)
appeared in 1999
• Teething Problems
– Implementation issues at the Departmental level
– Hologram affixing, Bottler education
• Gradually all the stakeholders realised the benefits, and
then gave their wholehearted support
© 2013 HOMAI www.homai.org

8. Technology currently seen on HEAL
• Combination origination techniques
– Classical 2D/3D
– Dot Matrix
– High resolution Litho
• Substrates
– Multi coloured bespoke security Films
– Customised tamper evidence
• Conversion
–
–
–
–
Demetallization
Security Inks
Taggants
Serial Numbers
© 2013 HOMAI www.homai.org

9. 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
© 2013 HOMAI www.homai.org

10. 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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11. Market Coverage
Jammu
& Kashmir
Punjab
State using
HEAL(12)
Delhi
Assam
Himachal
Pradesh
Meghalaya
Uttrakhand
Haryana
Uttar
Pradesh
Rajasthan
Arunachal
Pradesh
Sikkim
Nagaland
Bihar
State using
Paper based
label (5)
Gujarat
Madhya
Pradesh
Manipur
Jharkhand
Chhattisgarh
Orissa
Maharashtra
West
Bengal
Mizoram
Tripura
Potential (11)
Goa
Karnataka
Andhra Pradesh
Puducherry
Kerala
Tamil Nadu
© 2013 HOMAI www.homai.org

12. Revenue in Million Euro
Case Study – Tamil Nadu
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13. Hologram
Introduced
Revenue in Million Euro
Case Study – Madhya Pradesh
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14. Hologram
Introduced
Revenue in Million Euro
Case Study – Uttar Pradesh
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15. Revenue in Million Euro
Increase in revenue from
2004-05 to 2011-12
States Using Holograms
States Not Using Holograms
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16. Road Ahead
• Practically all the states are at various stages of
considering adoption of HEAL
• We believe that by 2015 all the states should have some
kind of Liquor Tax Stamp in place
• Track and Trace based HEAL
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17. Implementation of Track and Trace
Based System
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18. HoMAI’s Role
• Keep an eye on suspicious activities
• Help in conducting raids
• HoMAI collects data from the States and processes it
• Publish reports
• Conduct Press campaigns and mobilise public opinion
© 2013 HOMAI www.homai.org

19. Press Clippings
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20. 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!!
© 2013 HOMAI www.homai.org

21. Thank You
For more information, please contact:
Hologram Manufacturers Association of India
21-Ground Floor, Devika Tower 6
Nehru Place, New Delhi 110019
Telefax: +91-11-41617369
Email: info@homai.org
Website: www.homai.org
© 2013 HOMAI www.homai.org