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What is Social Capitalism? Social Capitalism means contributing to the protection and betterment of society through business practices. Authentix does this by applying advanced technologies to combat global issues such as counterfeiting and smuggling. In doing so, we keep products, like vital medicines, safe from counterfeiting and smuggling, ensuring that sales revenues flow to their rightful owners - brand owners and governments – rather than to criminals. Examples of Social Capitalism in action include the Excise Fuel Tax Recovery programs that Authentix has implemented in India and Guyana. Case Study: IndiaIndia subsidizes the price of kerosene for the nation’s poor to use for cooking and heating. However, a significant portion of this low priced product is stolen and diverted for use in higher taxed auto fuels. This substitution of low tax kerosene for legitimate auto fuels, robs the brand owners and Government of substantial revenues necessary to support employment, prosperity and social development. It is reported that total annual losses are as high as US$5 billion. To curb this illegal practice, Authentix markers are introduced into all government-subsidized kerosene. Fuel sampling is regularly conducted at India’s 32,000 retail fuel outlets to detect the presence of the markers. If the kerosene marker is detected in auto fuel, it gives the government an instant positive indication of fraudulent activity. Following commencement of the program in the last quarter of 2006, early reports in 2007 have indicated a substantial rise in taxable diesel sales generating an additional $30M/month in tax revenue for the government. These incremental taxes ensured that the program paid for itself shortly after implementation, with further benefits accruing each month. Additionally, since the program start recovered sales revenues for the oil marketing companies have totaled nearly $100 million per month. Case Study: GuyanaThe South American nation of Guyana faced a myriad of fuel-related tax losses and so looked to Authentix for a solution. Fuel was being smuggled across country borders and sold illegally to retail sites and taxed road fuels were being adulterated with low-tax kerosene. Authentix fuel markers were blended into legitimate fuel at secure terminals. Fuel samples from retail stations were taken and tested for the presence of Authentix markers. Authentix managed the entire program for the government of Guyana and saw results almost immediately with over $15 million in lost tax revenues recovered in the first year. The program paid for itself in less than a month, retail sites selling illegal fuel were reduced from 40% to 18% in the first year, and fuel volumes increased 10% year on year. It’s a program that made a lasting impression on government officials. “The moneys generated by this program are enough to build a school or clinic in each district; enough to give each civil servant a 5-% raise,” said Manzoor Nadir, Guyana’s Minister of Commerce, Industry and Tourism. As a result of the increased fuel revenues resulting from the program, Guyana cut fuel taxes by 15%, despite rising international fuel prices. Over the last 4 years, Authentix has helped recover over $4 billion for governments and brand owners, helping to sustain the welfare of their employees and citizens and the betterment of society as a whole. |
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