RFID tags become the best solution for the anti-counterfeiting management market

In the past, my country's consumption tax was a central tax whose revenue was completely attributed to the central government, and its tax revenue was mainly paid by the competent tax authorities in the production link. The so-called "downward transfer" of consumption tax means that part of the consumption tax or part of the tax items that used to belong to the central government will be transferred to local governments, while the so-called "backward transfer" means that the consumption tax that used to be paid by the producer will be transferred to wholesalers or retailers to pay to the local tax authorities. After the consumption tax is transferred downward and backward, part of the revenue will be transferred to the local government of the consumption place.

What is the connection with RFID?

A core content of the consumption tax reform is "backward transfer", which is transferred from the producer to the wholesaler or retailer to pay to the local tax authorities.

According to the data in 2023, my country's current consumption tax mainly comes from tobacco (53.4%), petroleum fuel (33%), automobiles (7%), and alcohol (4.6%).

For example, if the consumption tax of Kweichow Moutai is levied according to the place of production, Guizhou Province and the central government will share it together. If it is levied according to the place of consumption, the consumption tax of consumption in Guangdong Province will be shared by Guangdong Province and the central government.

Since the business logic has changed from before, I think this can be well combined with RFID passive IoT tags. According to the business logic after the consumption tax reform, there is a clear "anti-mixing" rigid demand for the management of the circulation links of major consumer goods such as cigarettes, oil, cars, and wine.

During the research stage of our "2024 China RFID Passive Internet of Things Industry White Paper", we saw that RFID tags have been used on a large scale in the circulation links of consumer goods such as tobacco and liquor based on the demand for "anti-mixing", mainly in large enterprises, and have not become the industry standard.

Under the promotion of consumption tax reform, the management of these consumer goods to prevent mixed goods will be a very rigid demand.

Some friends may ask, is RFID necessary for the management of anti-mixing?

Of course, RFID is not the only solution to solve the problem of anti-counterfeiting, but it is the best solution on the market. The author believes that the reason why RFID can become the best solution in the "anti-counterfeiting" management market is mainly reflected in the following aspects:

First: cost-effectiveness. If real-time management of items can be achieved, it is definitely the best, but such solutions are too expensive. Networks need to be laid out and a large number of active tags are needed. The RFID solution is first of all cheap. It is the cheapest IoT-Tag product on the market. Secondly, its business logic does not necessarily need to be fully covered. It only needs to be counted and tracked at the checkpoints and warehouses. The location of the items and the whole process traceability can also be known through business software.

Second: saving manpower. If the current barcode or QR code is used, the whole process traceability can also be achieved. However, compared with the RFID solution, a large amount of manpower investment is required, the cost will increase a lot, and manpower is also prone to errors.

Third: convenience. Whether it is to attach RFID tags or use the solution, the RFID solution is very user-friendly.