BIR issues guidelines on new tax stamps on cigarettes

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has issued a circular detailing the requirements for the affixture of tax stamps on both imported and locally-manufactured cigarettes in preparation for the implementation of the long-delayed Internal Revenue Stamps Integrated System (IRSIS) starting next month.

The IRSIS is a track-and-trace system which will reflect when the cigarette was made as well as when taxes were paid.

Under Revenue Memorandum Circular 72-2014, all locally manufactured packs of cigarettes should have the new tax stamp by Oct. 1.

The BIR expects both locally made and imported cigarettes to bear the new stamp tax effective Feb 1, 2015.

According to the BIR, no importation and subsequent release of imported cigarettes from the customs warehouse shall be allowed unless the new stamps shall have been affixed effective Jan. 1, 2015.

The BIR shall conduct a physical inventory of all imported cigarettes held in possession in the finished goods warehouse of local manufacturers. The importers shall submit a written report of inventory of all old internal revenue stamps issued by the BIR.

All importers and local cigarette manufacturers are required to enroll or register with the IRSIS before they can purchase the revenue stamps.

Each revenue stamp will be sold for P0.13 with the payment going to state-run APO Production Unit Inc. No sale will be made unless the excise tax due on the total stamps has been paid first. Failure to claim the stamp tax at the scheduled date of release shall authorize APO to charge the concerned parties reasonable storage fees.

For purposes of verification of the authenticity of the stamps as well as determine whether or not the proper taxes were paid, the BIR will conduct an on-the-spot surveillance on cigarette products.