A tax stamp perforator and notcher (10) applies a diagonal line of spaced apart perforations (14) on a tax stamp (12) for subsequent application to a cigarette pack (24). The stamp is glued or otherwise applied to the cigarette pack normally across the back of the pack and one of the sides thereof. When the cigarette pack is opened the tax stamp is torn along the lines of perforations. In order to facilitate rapid application of tax stamps to a production line of cigarette packs, notches in the form of lines of increased densification (16) are applied to each stamp in the area where the stamp is bent around the side of the cigarette pack. These lines of increased densification are arranged parallel to the edge of the cigarette pack, and preferably one of the lines lies along the edge of the cigarette pack to thereby reduce the ability of the tax stamp to spring back away from the pack when glued to the pack. This feature enables the stamps to be applied to the packs at high production rates.