Every year, around 118 billion tax stamps are used on cigarettes and alcoholic drinks across 90+ countries – serving not only as a tax collection tool but also as a key element in excisable goods management programs that enable product authentication and traceability to protect consumers and government revenue.Ā
The number of countries adopting tax stamp regimes continues to grow, with new applications emerging across various sectors, including mineral water, soft drinks, beer, pharmaceuticals, and cement. At the same time, rising illicit trade and evolving market expectations are driving the next major transformation: the convergence of physical and digital security technologies in the world of tax stamps.Ā
Over the past decades, excise management systems have undergone a remarkable evolution – from purely physical tax stamps to integrated digital-physical solutions that connect with advanced traceability systems. Governments worldwide are now redefining the role of tax stamps, embedding digital innovations alongside traditional physical features. The goal: to strengthen control, ensure transparency, and stay ahead of increasingly sophisticated counterfeiting and compliance challenges.Ā
Join Jeremy Stillman, Vice President of Global Government Markets at Inexto, as he explores where the market is heading, the emerging trends shaping the industry, and how technology is revolutionizing excise goods management for a more secure and transparent future.Ā
As physical and digital security come together, what are the key forces driving change in excise goods management and tax stamp programs today?
When we look at whatās driving the evolution of tax stamps and excise management systems, several key forces are shaping this change.
First, illicit trade continues to rise - from tobacco smuggling and counterfeit alcohol to fake medicines. These crimes pose real risks to citizens and economies worldwide.
Second, consumers themselves are becoming part of the solution. By scanning products, they can now verify product authenticity and support enforcement efforts directly.
Third, governments want greater visibility and control - and thatās where data and artificial intelligence come in. AI can analyze massive amounts of information to detect anomalies, predict illicit activity, and guide smarter decisions.
Sustainability is also an important driver. Reducing physical components like inks and adhesives supports recyclability and environmental goals.
And finally, innovation brings inclusion. Digital technologies can make authentication tools more accessible, even for people with visual impairments.
Together, these trends are redefining how we protect consumers, revenue, and trust in the market.
How is technology enabling governments to go āphygitalā and strengthen control over excise goods?ā
Technology is really at the heart of this shift to what we call phygital excise management, combining the best of physical and digital security.
Digital solutions donāt replace the physical stamp - they enhance it. They add new layers of authentication, enable real-time track-and-trace, and make verification faster, more reliable, and harder to bypass.
Of course, just like a physical stamp, a printed code can be copied if itās not properly protected. Thatās why securing the code itself is so critical.
Advanced digital technologies now allow us to authenticate those codes instantly, reinforcing the integrity of the entire system. As data carriers like QR codes become gateways to product information and regulatory compliance, keeping security at the core is essential to protect both consumers and governments.
Ultimately, modern excise management means real-time traceability across global supply chains, strong authentication at every stage - from manufacturers to consumers - and seamless integration with regulatory frameworks. Technology is what makes that possible.
Looking ahead, what emerging trends should governments be preparing for in excise management and tax stamp programs?
Weāre seeing several important trends that are set to shape the next generation of excise management systems.
First, digital transformation will accelerate with data becoming central to how governments monitor, analyze, and enforce compliance. Real-time visibility across the supply chain is quickly moving from a nice-to-have to a must-have.
Second, interoperability is a major focus. Governments are increasingly connecting excise management programs with broader e-governance platforms, electronic systems that use technology to deliver services to citizens, businesses, and other agencies. This integration helps centralize information, strengthen cooperation, and improve enforcement efficiency.
Third, consumer engagement continues to expand. Programs that enable people to verify products themselves are building greater trust and transparency. In fact, consumers are becoming key partners in the fight against illicit trade.
And finally, artificial intelligence and advanced analytics are transforming how data is used - turning vast amounts of traceability information into actionable intelligence for smarter policy and enforcement.
Want to learn more?
Want to learn how Inexto can support your excise management strategy? Our team can guide you - drawing on real-world experience from projects like Jordanās nationwide track & trace rollout.