Phillipines: BIR To Monitor Cigarette Sales, Production

The woes of cigarette manufacturers are not yet over after the government imposed higher excise tax on their products to raise more revenues and discourage consumption.
 
The Bureau of Internal Revenue (BIR) disclosed yesterday it will install electronic counting gadgets at the production lines of all cigarette factories to monitor cigarette production and sales.
 
The tracking system automatically fixes the revenue stamp on every pack of cigarettes which is not now required.
 
This way, BIR will be able to easily detect and track smuggled and untaxed cigarettes distributed in the local market.
 
BIR Commissioner Kim S. Jacinto-Henares said the project will be awarded through a regular procurement process to any local and foreign companies.
 
Cigarette manufacturing companies that have the technical capability to install the gadget will not be allowed to participate in the bidding to prevent possible corruption of the data that the government needs for health and fiscal policies.
 
The BIR chief said the bidding will be handled by the Apo-Neda, a printing company under the Office of the Press Secretary which have the technical capability in handling the project.
 
But Henares said the project will be bidded "based on our terms of reference (TOR) and specifications including the lowest cost and security features."
 
The same project was initiated previously by former finance officials but did not push through.
 
Concerned revenue officials including then BIR chief Sixto Esquivias IV refused to sign the multi-million dollar deal with a foreign company on the ground that it did not undergo the regular process of public bidding as required by the General Procurement Act involving huge financial expense.
 
A study conducted by the World Health Organization showed that many countries found the tracking system effective in cutting tobacco smuggling and raising revenues. Enditem