National fuel tax and subsidy programs implemented by countries often create incentives for smuggling, adulteration and dilution of fuels, as well as outright theft. This Asian Development Bank’s Governance Brief reviews the issue and the use of fuel marking programs to interrupt the illicit trade of refined fuels.
Case studies of programs in Ghana and Serbia are provided as successful examples of how fuel authentication solutions enable governments to ensure authentic products are sold in-country to benefit law-abiding citizens – not criminals. Fuel authentication solutions enable governments to collect more excise taxes without raising taxes for the benefit of citizens and legitimate industries
This article was first published by the Asian Development Bank (http://www.adb.org).