Excise Dept to implement new security sticker system for liquor manufacturers

In response to recommendations from the Committee on Ways and Means, the Department of Excise is set to introduce a unique non-fake security sticker system for all liquor manufacturers. The new system aims to ensure authenticity and improve tax collection efficiency, the department said.

This is included in the recent report of the Committee on Ways and Means that presented to Parliament.

The key recommendations of the committee include the implementation of a security sticker that allows both the Department of Excise and consumers to verify the authenticity of liquor products. Consumers will be able to use a mobile app with a QR code feature to check the legitimacy of a product. Additionally, an automatic taxation system will be introduced, activated when the security sticker is affixed. This sticker will also display important details such as the date and place of manufacture.

Following the recommendations, the Excise Department sent a letter to the Managing Director of Madras Security Printers on 15 September 2023. A response was received on 3 July 2024, stating that Excise Department officials can already identify fake stickers based on unique markings. In cases requiring further verification, forensic testing can be conducted.

The Security Stickers and Security Stickers Management Committee has approved the creation of new security stickers with enhanced features to prevent counterfeiting. A purchase order for these new stickers is awaiting final approval.

One significant improvement involves making digital codes on the stickers visible to the naked eye, a feature that was previously hidden. This change has already been implemented at one manufacturer’s facility, and the printing of visible digital codes has commenced, the department informed the Committee on Ways and Means.

The agreement related to the issuance of stickers allows for the development of a new system for calculating taxes via a change request. The mobile app, available to the public, will provide additional details such as the sticker’s activation date, the manufacturer, and product strength, further enhancing transparency in the liquor industry, the Excise Department informed.