BIR keeping close watch on cigarette firms
Bureau of Internal Revenue building. INQUIRER FILE PHOTO
MANILA, Philippines–The Bureau of Internal Revenue (BIR) is keeping close watch over local cigarette firms to ensure compliance to and payment of correct excise taxes.
BIR Commissioner Kim Henares told a radio interview on Wednesday that she has ordered 24/7 surveillance of these firms amidst claims of underdeclaration of production volume that could result in the loss of billions of pesos in revenues for the government.
Henares said the tax agency would not hesitate to file tax evasion cases against erring cigarette companies if its audit yields evidence showing unscrupulous activities that allow these firms to sell below economically sustainable prices.
“We’ve already assigned BIR personnel on 24/7, Monday to Sunday, monitoring in their manufacturing facilities. We’re also auditing their tax payments,” she said.
Apart from strict monitoring, Henares said the reintroduction of security stamps on cigarette packaging is also another BIR initiative to prevent tax evasion. The BIR is set to implement its stamp tax measure next month.
One of the cigarette firms reportedly under watch is Mighty Corporation due to allegations that the Bulacan-based firm is underdeclaring its production volume that could deprive the government of billions of pesos in revenues.
During a recent interview, Henares said an audit on Mighty’s tax payment is necessary following the discovery of several discrepancies between the firm’s imports and exports transactions.
Earlier, the firm paid more than P800 million to the Bureau of Customs after it was assessed duties for imported tobacco in its Customs bonded warehouse. The bonded warehouse was padlocked by the BoC due to serious violations of the Tariff and Customs Code.
