The introduction of a new international tax stamp standard (ISO 19998), supported by the International Tax Stamp Association (ITSA), remains on track for 2017 despite plans to extend the publication deadline.
The news from the editorial group working on the proposed international standard on requirements for the content, security, issuance and examination of excise tax stamps, follows a progress review at a meeting in South Korea of the Working Group (WG) 4 of ISO Technical Committee (TC) 292.
The review identified sections of the standard that still need to be drafted and other parts that are too detailed, which could make it difficult for the intended readers—primarily from stamp-issuing authorities—to understand these sections.
Consequently, the group has approached ISO to extend the time allowed to enable it to thrash out the final details, while pointing out that the start of its work was delayed by merging its parent TC in to the new TC 292.
Plans for ISO 19998 come against the backdrop of a global market where some countries or regional states have stamp programs for collecting tax while there remains large parts of the world where there are little or indeed no tax stamps.
This is driving the requirement towards a global standard (ISO 19998) for the specification of tax stamps—one that would bring all countries using stamps, and encourage those not using them, to have programs that are in line with the best and most effective on the market.
A new standard would provide guidance on a number of related issues: how to approach a new tax stamp project, how to upgrade an existing system and how stamps could be integrated into a tax collection program rather than being a standalone device.
“All members of the group are working hard to keep the project on target and on track in terms of content and timing,” said Ian Lancaster, project leader for the standard.
“However, participation in the editorial group from representatives of companies using or applying tax stamps would also be welcomed.”
The aim now is that all sections will be written by the next group meeting in early autumn which will enable participants to consider the complete first draft (in ISO terms, a working draft).
“The simplification of some sections is intended to provide clear guidance to issuing or specifying authorities, without becoming bogged down in detail,” said Lancaster.
“However, details will be provided in an annex (published as part of the standard), so someone who wants to study this detail can do so.”
One example of this agreed approach is the description of authentication features in the standard.
The current draft lists ten families of such features, and the group considered the draft description of holograms and OVDs, the first family to be expanded as an example of what was intended for the other features.
It was concluded that this description was too technical and too long, therefore off-putting for a non-specialist reader, and that only a short description of the feature and how it is used is needed.
Currently, there are over 250 revenue agencies (national and state governments) around the world using tax stamps to collect valuable tax duties and excise payments, involving the worldwide production of some 140 billion stamps annually. As well as providing visible proof of tax payment and revenue collection, tax stamps have also taken on product authentication and anti-tampering applications.
The next full meeting of the ISO 19998 writing group will be in September.