Lawmaker calls Sicpa cost cut meaningless

MANILA, Philippines - Members of the powerful House ways and means committee said the proposal to reduce the cost of tax stamps by as much as 20 centavos per strip stamp is “meaningless,” considering that the amount still has to be shouldered by taxpayers.

This was stressed by Deputy House Speaker Eric Singson after Bureau of Internal Revenue Deputy Commissioner Lilia Guillermo said they had already convinced the Switzerland-based SICPA Product Security SA (SICPA) to cut costs.

Singson said the cut is actually “worthless and carries no great weight” as the cost is practically a form of taxation.

He added that such costs must be borne by the government because it is an administrative charge and consumers must not bear the cost for administrative lapses of the BIR.

The senior lawmaker said he is still astonished why the BIR is pushing for these security stamps despite admonitions from members of Congress.

“It seems that the deal between the BIR and SICPA has a semblance of a midnight contract. It will be better that the next elected administration handle this unsolicited proposal from SICPA,” Singson said.

Antique Rep. Exequiel Javier, chairman of the committee, earlier warned the BIR against imposing these so-called security stamps because these are attempts to raise revenues without the approval of Congress.

The warning came when Guillermo revealed that the tax stamp proposal will not entail any cost to government since it will be undertaken through the build-operate-transfer (BOT) scheme.

The additional cost will eventually be shouldered by consumers, she said during a congressional inquiry.

This infuriated Javier, who questioned BIR’s authority in raising taxes.

“If it’s a straight regular BOT system, then there’s no need for approval of Congress. But here, there’s a variation of the BOT which needs Congress’ imprimatur. You cannot raise revenues without Congress’ approval. Aside from the excise taxes that you’re collecting, you’ll be raising revenues. You cannot do it through the BOT,” Javier stressed during a committee hearing.

Singson explained that the reason behind the hearing was to check the legality of the BIR-SICPA transaction as well as protect the interest of the government.