Finance Secretary Carlos G. Dominguez III. (INQUIRER FILE PHOTO/JOAN BONDOC)
MANILA — Early next year, the government will start tighter monitoring of the excise taxes being paid by manufacturers as well as importers of distilled spirits and alcoholic drinks by affixing tax stamps, similar to that on cigarettes.
In the case of tobacco products, the Bureau of Internal Revenue will introduce a cigarette tax stamp with a new design and better security features by October in order to combat the proliferation of fakes, according to officials.
Finance Secretary Carlos G. Dominguez III told reporters on Wednesday, that the implementation of the Internal Revenue Stamps Integrated System (IRSIS) on alcoholic drinks would likely begin in early 2018.
Last January, Internal Revenue Commissioner Caesar R. Dulay said the upcoming implementation of IRSIS for alcohol and distilled spirits would “ensure the collection of correct excise taxes on distilled spirits and wines as well as curb illicit trade of alcohol products in the country.”
Dulay told a House ways and means committee hearing on Tuesday that the BIR has started circulating to stakeholders a draft revenue regulation (RR) that would implement the IRSIS on alcohol.
“We also sent the draft RR to the Department of Finance so we can coordinate to ensure that this will be in sync with the comprehensive tax reform program,” Dulay told legislators.
But Dulay said the BIR has not conducted a public hearing on the measure.
Also, Dulay said state-run printer APO Production Unit Inc. has not determined the cost of the tax stamp, a reason for the delay in implementation.
Even as consultations with stakeholders, especially domestic manufacturers and importers, started in 2015, BIR Assistant Commissioner Teresita M. Angeles said the costing of stamps remained an unresolved issue.
But Dulay later told reporters that the BIR would coordinate with the DOF, APO as well as IRSIS Corp., which has been providing the tax stamps’ security features, to fast-track its implementation.
Angeles said the memorandum of agreement (MOA) between the BIR and APO would be finalized soon.
In the case of cigarette tax stamps, which had been counterfeited by unscrupulous firms, Angeles said the BIR would release new stamps to replace the compromised design.
“Commissioner Dulay already approved the new stamp design. We’re planning to release them in coordination with APO in October,” Angeles disclosed.
The BIR had filed three tax evasion cases against homegrown cigarette manufacturer Mighty Corp. for alleged use of fake tax stamps to dodge excise tax payments.
Angeles also disclosed that the BIR has been planning to install CCTV cameras in the facilities of all cigarette manufacturers and importers. At present, only Mighty’s facility has a CCTV surveillance system being monitored by BIR revenue officers on-premise.
The BIR will also sign an MOA with the Philippine Retailers Association to help retail outlets determine whether the stamps are genuine or not, according to Angeles. SFM