BIR to adopt Swiss stamp-tax technology

MANILA, Philippines - The Bureau of Internal Revenue (BIR) is preparing to implement soon the stamp-tax technology project of Switzerland-based SICPA Product Security S.A. following the recommendation of the National Economic and Development Authority (NEDA) to pursue the deal.

BIR Deputy Commissioner Lilia Guillermo said the agency would be meeting with visiting representatives of the Swiss group this weekend to thresh out details of the unsolicited proposal submitted by the Swiss firm to the BIR for its plan to affix security stamps on cigarettes as a way to curb smuggling.

Earlier, the NEDA’s Investment Coordination Committee gave its long-awaited approval on the SICPA proposal, advising the BIR to pursue negotiations with the Swiss firm.

“We have received the NEDA endorsement. Negotiations will now take place,” said Guillermo, who heads the BIR Information Systems Group.

She said they expect two to three representatives from SICPA arriving from Switzerland this week.

The BIR submitted the proposal to NEDA for review after tobacco firms opposed the plan due to the additional costs they would incur.

Guillermo said the BIR would try to negotiate with the Swiss firm on the lowering of the project cost.

She said based on the original unsolicited proposal, tobacco companies will be incurring an extra 50-centavo per pack for subscribing to the stamp-tax technology of SICPA.

Guillermo said the BIR would haggle for a lower extra cost that is smaller than 50 centavos additional cost per pack.

NEDA also said the BIR should subject SICPA’s proposal to aso-called Swiss challenge by inviting other companies to match or surpass the offer.

 In giving its nod, NEDA-ICC said the SICPA proposal could “enhance excise tax collection for all locally-manufactured cigarettes sold in the domestic market and to reduce illicit trade in the country using an integrated technology solution.”

“The BIR is then expected to notify the (NEDA) ICC of the result of its negotiation with the unsolicited proponent of the proposal, towards undertaking the Swiss challenge,” NEDA has said.

A Swiss challenge is a form of public procurement which requires a government agency Ñü who has received an unsolicited bid for a project to be provided to government Ñü to publish the bid and invite other prospective private proponents in the market to match or exceed it.

Guillermo said the BIR would heed NEDA’s proposal.