Tobacco farmers score tax stamps

MANILA, Philippines – Tobacco farmers in the Ilocos and Cagayan Valley regions have criticized Sicpa Products Security SA (SICPA) for being impatient in cornering a multi-billion peso contract with the Bureau of Internal Revenue (BIR) to put strip stamps on tobacco products.

The farmers—represented by the Camanggaan Barbar Nagsuputan Farmers Association, the Lucky Star Farmers Association, the Barangay Sengngat Ecological Society, the Porporiket Farmers Association, and the Immayos Farmers Association—said SICPA’s impatience proves that the company is only after profits instead of addressing issues raised against its proposal.

“We, the farmers, would be severely affected by this high-priced tax stamp scheme,” they said. “SICPA’s proposal would jack up the prices of local cigarette products, which will lower cigarette consumption resulting in a lower demand for our crops.”

“Congress already investigated SICPA’s costly tax stamp scheme and found it ineffective, and that processes and requirements provided under the Build-Operate-Transfer Law were not followed,” they said.

It is estimated that an average of 52 centavos would be added to the price of each pack of cigarettes if SICPA’s tax stamp scheme is implemented. This is on top of any proposed increases in excise tax on tobacco products and value added taxes.

SICPA had earlier complained of the long negotiations with the government to put in place its tax stamp scheme.

The farmers belong to the country’s biggest tobacco cooperatives which have filed graft charges against members of the Bureau of Internal Revenue–Build-Operate-Transfer- Pre-qualification, Bids and Awards Committee (BIR-BOT-PBAC) and BIR Deputy Commissioner Lilia Guillermo for allegedly giving unwarranted benefits and advantages to SICPA despite its proposal’s non-compliance with relevant laws and adverse effects upon the whole tobacco industry.