MANILA – The Bureau of Internal Revenue (BIR) expects higher revenue collections following the implementation of tax stamps on cigarettes.
BIR Commissioner Kim Henares said the trade of illicit cigarettes will be monitored closely, and tax collections may increase with the implementation of the Internal Revenue Stamps Integrated System (IRSIS).
Henares said the IRSIS project, which was launched during the agency’s 110th anniversary, will enforce “stricter control.”
“There is illicit trade, but we don’t know how big it is,” she said.
The tax stamp on cigarettes is aimed at ensuring that all cigarette manufacturers in the country will comply with paying the right taxes.
The BIR is targeting a 22 percent increase in this year’s excise tax collection from tobacco products and alcoholic drinks to P104.79 billion from P85.93 billion last year.
“Maybe a bit because there will be stricter control,” Jacinto-Henares told reporters when asked if the implementation of IRSIS will result in higher excise tax revenues. “There is illicit trade, but we don’t know how big it is.”
Under the new system, local cigarette makers will be required to affix the Philippine government’s tax stamp if the market where the product will be sold has no security stamp system.
The manufacturer is not required to attach the BIR’s tax sticker unless the products are exported to a market that already has an existing tax stamp.
“Cigarette exporters will be required to register their foreign tax stamps with the BIR, then we will get a report from our counterpart in the other country about the number of stamps they have bought,” Henares said.
She said the BIR made adjustments to address concerns of some cigarette manufacturers.
“We tried to address their concerns, we made some adjustments on that. The implementing rules and regulations (IRR) is now with the DOF, and we hope to release it by next week,” she said.