A Program to Control the Payment of Excise Taxes on Alcohol and Tobacco

The Problem

The smuggling and illegal sale of alcohol and tobacco products are endemic in a large number of countries.  Not only do these criminal activities circumvent the payment of excise taxes, but in many cases the products are illegally produced or counterfeited, posing a serious threat to public health. These threats translate into long-term health concerns and seriously challenge already overburdened public healthcare systems.

The Technology

KIBO’s IntelTax program utilizes advanced security features and processes to help governments effectively combat these problems. Legally imported and manufactured alcohol and tobacco products are identified with non-reproducible, tamper-proof labels.  These labels are embedded with security markers that can be read using special scanners to confirm the legitimacy of a product.

The IntelTax Solution

KIBO’s IntelTax program allows illegally imported and distributed alcohol and tobacco products to be easily identified, ensures the distribution of legitimate products to the consumer, and enables the Government to effectively control the collection of excise taxes for approved products. 

  • KIBO produces unique high-security labels specifically coded for government approved importers and manufacturers of alcohol and tobacco products.  
  •  The Government issues an order requiring importers and domestic manufacturers of alcohol and tobacco to affix the IntelTax labels onto their products destined for the national market. The importers and manufacturers are able to purchase the labels once they have paid the requisite excise taxes.     

  • KIBO trains government officials to properly operate the scanners used to read the IntelTax security labels.  Product authenticity is confirmed at all stages in the distribution process, including warehouses and points of sale. The locations and product lots selected for inspection are determined using risk analysis algorithms provided by KIBO. Products without the proper security labels are confiscated and destroyed.
  • KIBO assists the Government in implementing a public awareness campaign on products bearing the IntelTax labels and the dangers of consuming unauthorized products.