Philippines: Cigarette Manufacturers Required to Pay Cost of Strip Tax Stamps

Source from:  Manila Bulletin 07/22/2014

The Department of Health (DOH) sees the signing of the bill on graphic health warnings on tobacco products as another milestone in the agency's quest to fight all possible threats to public health.

"The signing of RA 10643 [or An Act to Effectively Instill Health Consciousness through Graphic Warning on Tobacco Products] that mandates the display of graphic health warnings on tobacco products is another milestone in our noble quest to fight all possible threats to public health and pursue a healthier future to every Filipino," Health Secretary Enrique Ona said.

At the same time, Bureau of Internal Revenue (BIR) Commissioner Kim Jacinto-Henares yesterday said cigarette manufacturers will shoulder the cost of of strip tax stamps to be affixed on every cigarette pack.

She said the new requirement will be implemented before the end of the year when the Department of Finance (DOF) approves the proposed regulations on the use of the revenue stamps.

The government decided to restore the printing of stamp on cigarette products to monitor volume of production and distribution and check the entry in the local market of untaxed or smuggled brands.

This also complies with the World Health Organization's  program of controlling consumption of tobacco products for health reason.

Latest survey done by Time magazine showed a 14 percent drop in cigarette consumption among American teenagers..

The BIR will be charging 13 centavos for each stamp which has security features to prevent counterfeiting. Enditem