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Counterfeit liquor with fake stickers mushroom in market

26 Jun 2022

  • Tax evaders use fake foolproof stickers on products
  • Sold at lower price than authentic stickered products
– By Tanya Shan The foolproof liquor sticker system that was recently introduced by the Excise Department for liquor products to curb mushrooming illicit liquor production is being misused by certain groups to evade taxation, particularly in the northern and eastern areas of the island, The Sunday Morning Business learns.  Information received from senior liquor industry officials reveals that these liquor products carry a sticker that resembles the authentic foolproof liquor sticker, thereby hoodwinking the seller and the consumers.  “These products do not have a foolproof sticker so they do not get captured in the Excise Department data, making it easy for these people to evade taxes through this method. When they do not have to pay taxes, they can sell the products at a lower price than that of similar products with authentic stickers. Consumers will of course prefer the vendor that sells the same quantity at a lower price,” industry sources told The Sunday Morning Business.    Further, the sources claimed that the Excise Department seemed to be somewhat supportive of these counterfeit liquor product sellers, as when these sellers had been apprehended, the Department had reportedly asked the manufacturer to withdraw those items from the market instead of seizing them. According to these sources, when the matter had been taken up with the Excise Department, they had been informed that action was being taken against the perpetrators. However they were uncertain whether the Department would actually address the issue. The foolproof sticker is a requirement initially introduced by the then Ministry of Finance and the Excise Department a few years ago to curb the mushrooming of illicit liquor producers in the market and to reduce the resultant loss in State revenue.


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