DOF OKs new tax stamps on cigarettes

MANILA, Philippines – As part of efforts to combat the smuggling of tobacco products, the Department of Finance has approved the Bureau of Internal Revenue’s revenue regulation mandating the affixture of new tax stamps on locally manufactured and imported cigarettes.

The BIR issued Revenue Memorandum Circular 72-2014, requiring all locally manufactured packs of cigarettes to have the new stamps by October 1. 

The bureau expects both local and imported cigarettes to have the new stamps by February 2015.

The stamps will have machine-readable quick response or QR codes that will show when a particular pack of cigarettes was made and when the taxes for it were paid.

BIR Commissioner Kim Henares said the new regulation is central to the government’s anti-smuggling strategy.

“This measure will strengthen our capacity to combat smuggling of tobacco products. We believe in implementing regulations with enough teeth to bite down on smugglers who are intent on depriving the nation of critical resources for greed and private gain,” she said.

Finance Secretary Cesar Purisima, in approving the regulation, said, “In 2013, revenues from the Sin Tax Law were 51% higher than projected. Simple governance measures like this enable the government to push harder in driving our revenue collection performance ever upwards. We are consistently looking at ways to enhance the government’s ability to raise revenues at a critical time requiring much investments to our infrastructure, services, and people.”

The BIR said that effective January 1, 2015, imported cigarettes would not be released from customs warehouses unless they bear the new stamps.

The cigarette stamping regulation will be boosted by a provision allowing the BIR to conduct a study on the installation of Close Circuit Television Monitoring System on all production and withdrawal points in the premises of the cigarette excise taxpayer for more effective monitoring purposes. – Rappler.com

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