Product Labeling and Traceability Systems as Effective Tools for Combating Tax Evasion

Abstract

Combating tax evasion is increasingly shifting to the rapidly developing digital information space. The objective of this study is to assess the impact of digital controls over economic transactions in the movement of goods to ensure the sustainability of the state budget system. The central objective of this study was to identify new approaches to the use of such relevant digital tools in the field of tax administration for indirect tax revenues as product labeling and traceability systems. The objective was to identify, through comparative analysis, the most effective national practices of CIS and EAEU member states and subsequently assess the feasibility of implementing these elements in the interactions between economic entities in the union countries. Conclusion: The impact of introducing product labeling and traceability systems to ensure tax budget revenues is quite significant, and also contributes to a cleaner competitive environment, improved quality of goods in circulation, and the resolution of social issues. The new approaches and measures proposed by the author will contribute to a deeper connection between the two digital control tools under study. A particularly important factor is the collaboration of interested CIS and EAEU member states to improve the traceability system in the context of expanding cross-border trade between them, for example, through the introduction of a harmonized product catalog.