Put tax stamps on e-cigarettes, BIR orders firms

The Bureau of Internal Revenue (BIR) has ordered the affixing of tax stamps on all e-cigarette products to ensure proper collection of the higher levy slapped on these tobacco alternatives.

Internal Revenue Commissioner Caesar R. Dulay on Feb. 21 issued Revenue Memorandum Circular No. 24-2020, which listed down the administrative requirements to implement Republic Act No. 11467 signed by President Duterte in January.

“Heated tobacco products and vapor products are new products being introduced under the category of tobacco products subject to excise tax” such that manufacturers, importers and dealers/traders of these goods must amend their BIR registration to include tax type “excise tax,” RMC 24-2020 read.

They must also secure from the BIR’s excise large taxpayers regulatory division a permit to engage in business as a manufacturer, importer or dealer/trade of heated tobacco and vaping products.

All their existing and new e-cigarette brands must be registered with the BIR.

Since they are still widely identified as tobacco products, heated tobacco and vapes must also be affixed with internal revenue stamps signifying the correct excise tax payments.

Importers must secure a permit to import as well as an authority to release imported goods.

Meanwhile, local manufacturers must fill up an excise taxpayer’s removal declaration covering all removals from their factories.

Department of Finance estimates showed that the increased taxes on alcoholic drinks, heated tobacco and vapes under RA 11467 would raise P22.2 billion in additional revenues this year.

The tax take from implementing RA 11467 is expected to reach P137.2 billion from 2020 to 2024. INQ