BIR: Electronic Monitoring of Cigarette Production to Hike Excise Tax Collection

Source from:  Manila Bulletin 08/14/2014

Bureau of Internal Revenue Commissioner Kim S. Jacinto-Henares said yesterday the recent installation of electronic revenue stamp gadgets in the production lines of two leading cigarette manufacturing companies will enhance the collection of excise tax from this source.

The automated gadgets were installed in the production lines of Philip Morris Fortune Tobacco Corporation (PMFTC) and Mighty Corporation (MC) to record the volume of production and distribution of both manufacturers.

PMFTC, which produces mostly high-priced brands, and MC, the low-priced varieties, virtually control the local cigarette market with the former getting the lion's share or about 94 percent of the market.

The project is being implemented by the BIR via the so-called Internal Revenue Stamps Integrated System (IRSIS), a web-based application that oversees production and tracking distribution and in coordination with the government-owned Asian Productivity Organization (APO) Production Unit and IRSIS Corporation.

APO was commissioned by the BIR to manage the printing of revenue stamps with security features to prevent counterfeiting activities.

IRSIS handles the online enrollment of taxpayer users with facility to upload supporting documents like the board resolution.

Henares said the BIR decided to restore the use of revenue stamps to monitor production, distribution and check the entry of untaxed and smuggled brands in the market,　in compliance with the World Health Organization's program of monitoring production for health reason.

She said cigarette producers will purchase the revenue strip stamps from APO as the stamp is considered an accountable form under Republic Act 9184.

Manufacturers put this strip stamps into the　electronic stamp machines under the supervision of revenue field men and representatives from APO and IRSIS.

A joint memorandum order was signed by Revenue Assistant Commissioner for Large Taxpayers Service　Nestor S. Valeroso and Assistant Commissioner for Information Systems Group Lilia Guillermo defining the policies and procedures in implementing the IRSIS project.

Henares said the cigarette manufacturer may either pass the additional expense or absorb the stamp cost priced at 13 centavos a piece. Enditem