How to fix food supply chains with blockchain based traceability — Part 4. Market transparency
Decrease food fraud cases, improve market transparency
The problem
Public sector corruption takes out $1.5 trillion to $2 trillion annually from the global economy in the form of bribes and costs far more in stunted economic growth, lost tax revenues and sustained poverty, according to the International Monetary Fund. The strategies to fight corruption require transparency, a clear legal framework, a credible threat of prosecution and a strong drive to deregulate economies.
How TE-FOOD can help
Traceability = Transparency
TE-FOOD on blockchain is a completely transparent system. Not only the supply chain members and authorities have access to traceability information, but through the public mobile application the consumers have the opportunity as well to access all food history information. That means total transparency which is a very important instrument to a step forward to a clean and transparent food market.
Supply chain rating and scoring
By rating their connecting supply chain participants, companies can increase transparency of the food industry. Low rating members can receive alerts or can be banned by authorities since it is a good sign of fraudulent conduct. High rating members can use it as a marketing advantage, or to gain access to governmental subsidiaries.
Increase VAT revenue, reduce VAT percentage
The problem
A value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added: at the stage of production and at the point of sale. In most countries this is the most important and the largest volume of tax income. The VAT percentage may vary by product types, but in a lot of countries it is very hard to follow the real retail transactions and selling activities to ensure the needed VAT income for the country’s treasury. Because in a lot of emerging countries the grey market is strong, the VAT rates on legal trading is high to compensate the loss, so the companies of white markets have disadvantages in these situations.
How TE-FOOD can help
Traceability leads to a more transparent commercial activity
With TE-FOOD, the local authorities can get a tool to monitor the trading in more detail, which can help to equalize the measures of taxation among the supply chain members, and additionally to increase the overall VAT income. In medium term, it can lead to the reduction of VAT rates for products with traceability information which results in lower prices for the consumers of fresh food products.
TE-FOOD is going to implement blockchain, and tokenize its operation. Pre-sale is planned for November, 2017.
Website: https://www.tefoodint.com/
Facebook: https://www.facebook.com/tefoodintl/
Twitter: https://twitter.com/TE_FOOD
LinkedIn: https://www.linkedin.com/company/11284449/
YouTube: https://www.youtube.com/channel/UCt4dONFbQCo1qC14mF0Z9_g
Bitcointalk thread: https://bitcointalk.org/index.php?topic=2176849.0
Telegram channel: https://t.me/te_food
