The Bureau of Internal Revenue on Friday officially launched the stamps tax system, which is aimed to improve its excise tax collections on tobacco products.
The Internal Revenue Stamps Integrated System or IRSIS is the issuance of tax stamps on cigarette packs. The permanent stamps would replace the easily detachable stickers presently placed on cigarette packs sold in the country.
IRSIS will be implemented through a web-based system that involves distribution and monitoring capabilities, which will ensure the collection of correct excise taxes on tobacco products.
BIR Commissioner Kim Henares expects higher excise tax collections upon the implementation of the stamp tax system.
“[Collections on tobacco] it may increase a bit because there will be stricter controls,” she said during the bureau’s 110th anniversary celebration at its head office in Quezon City.
As of end-April, excise taxes on cigarettes amounted to P11.33 billion, 14.22 percent or P1.41 billion higher than the P9.92 billion collected during the same period a year earlier.
For full-year 2014, the bureau is aiming to collect a total of P1.456 trillion in tax revenues, raising the target amount from the 2013 target of P1.253 trillion by 16.2 percent or P203 billion. Of the total, P124 billion is expected to come from the excise tax on tobacco and alcohol products.
Henares said that the implementing rules and regulations of IRSIS are expected to be released by the Department of Finance by the second week of August, while the actual implementation is slated for September.
The stamp tax system is in accordance with the provisions of Republic Act 8240, which amended certain sections of the National Internal Revenue Code in 1996.
“Internal revenue stamps, whether of a bar code or fusion design, shall be firmly and conspicuously affixed on each pack of cigars and cigarettes subject to specific tax in the manner and form as prescribed by the Commissioner of Internal Revenue upon approval of the Secretary of Finance,” the relevant provision of the law states.