A digital tax tracking system implemented by the General Directorate of Internal Taxes has eliminated adulterated alcohol deaths in the Dominican Republic for four years, according to tax official Amaury Abreu in Santo Domingo.
The technology, known as TRAFICO and developed by Swiss security firm SICPA, registers and verifies the complete lifecycle of alcoholic beverages and cigarettes from production or importation through to retail sale.
Modern markets face ongoing challenges from contraband, tax evasion, product adulteration, and illicit trade networks that require advanced state monitoring across supply chains. The smart fiscal stamp functions as a high-security instrument to safeguard public administration and business competitiveness.
The public health milestone relies on coordinated enforcement between the tax agency, the Ministry of Industry, Commerce and MSMEs, the Specialized Body for Fuel Control and Goods Commerce, the General Directorate of Customs, the Ministry of Public Health, consumer protection agency Pro Consumidor, the Public Ministry, and private sector leaders. Foreign governments and international organizations have recognized the Dominican model as a regional benchmark for human life protection.
Anti Counterfeiting Technology and Tax Revenue
The TRAFICO system uses smart stamps featuring optically variable security inks, ultraviolet light-reactive elements, and individualized alphanumeric codes. These security features create physical and digital armor against product counterfeiting.
By verifying product origin and legality, the system reduces evasion of the Selective Consumption Tax and the ITBIS value-added tax. Protecting state revenue also defends legitimate manufacturers, distributors, and retailers who generate local jobs and pay taxes from unfair competition.
The digital platform transforms fiscal oversight from a reactive approach into a preventive and predictive system. Recorded transactions generate data intelligence that allows authorities to identify risk patterns, detect supply chain anomalies, prioritize inspection sweeps, and optimize public resources before fraud occurs.
Citizen Verification and International Standards
Public participation is integrated through the Revísame mobile application, which allows consumers to scan and verify the authenticity of alcoholic beverages prior to purchase and consumption. The World Bank highlighted this citizen validation tool as an international good practice for strengthening public trust in tax administrations.
Advanced fiscal traceability systems are already operating in the United States, Thailand, Chile, Great Britain, Morocco, Malaysia, and Georgia to combat illegal trade, recover informal economy revenue, and improve health and customs controls.
The global trend is expanding as the European Union advances its Digital Product Passport, which requires unique digital identifiers to track product origin, composition, sustainability, and supply chain movement. Abreu noted that the Dominican Republic's experience with TRAFICO gives the country institutional and technical capabilities to comply with future international trade regulations.
Traceability also provides a competitive edge in environmental sustainability, as global investors and consumers increasingly demand precise tracking of product value chains and ecological impacts.
Expansion to E Cigarettes and Fuel Tracking
The Dominican government is expanding traceability to new commercial sectors under the recently enacted Law 30-26, which covers economic growth measures, tax simplification, and international crisis mitigation. The legislation establishes a 55 percent ad-valorem tax on electronic cigarettes and vaping devices.
Law 30-26 empowers authorities to apply product marking and tracking mechanisms to vaping devices, drawing on the operational framework established by TRAFICO to secure tax collection and protect consumer health.
Dominican authorities are also preparing to implement fiscal traceability for liquid fuels using patented molecular markers that cannot be replicated or altered. The molecular technology will enable audits of every gallon throughout distribution to detect fuel theft, adulteration, and tax fraud schemes that threaten energy security and the environment.
Fiscal stamps have evolved from physical labels into unique digital identity systems connecting tax authorities, private businesses, and citizens. Abreu concluded that expanding digital traceability into additional productive sectors builds institutional transparency and creates safer economic conditions for sustainable growth.
