Sicpa Commits to Push Through With Tobacco Monitor Project

Source from:  Business Inquirer 12/30/2010

MANILA, Philippines-Amid lingering controversy about its tobacco-tax monitoring scheme, Sicpa Security Solutions SA is proceeding with its security project designed to track domestic cigarette and cigar production that would help raise the government's tax base without the Aquino administration having to resort to new taxes. In a position paper submitted to the oversight subcommittee of the House committee on ways and means, Sicpa said this project would allow the government to use "state-of-the-art technology" in running after tobacco smugglers and, more importantly, comply with the country's formal commitment in the global campaign against tobacco consumption. Sicpa informed the House subcommittee headed by Representative Giorgidi Aggabao that it remained "fully committed to the implementation of its project" despite calls for the cancellation of the deal by its critics. According to the Swiss firm, the benefits of using its system include additional excise tax revenue that may exceed P100 billion in seven years. This amount may, in turn, be used to fund higher public health spending that will allow the government to expand health insurance coverage in line with its commitments to the worldwide campaign against smoking. As a signatory to the World Health Organization Framework Convention on Tobacco Control, the Philippine government has to deliver on its commitments to adopt and implement effective legislative, executive, administrative or other measures to ensure that all unit packets and packages of tobacco products and any outside packaging of such products are marketed as part of international efforts to monitor, document and control the movement of tobacco products and their legal status. The government also has to institute a practical tracking and tracing regime that would secure the distribution system and assist in the investigation of illicit trade; establish or reinforce and finance a national coordinating mechanism or focal points for tobacco control; and implement tax policies and, where appropriate, price policies on tobacco products so as to contribute to the health objectives aimed at reducing tobacco consumption. Enditem