Chinese firm challenges Sicpa, Philip Morris proposal on cigarette stamp tax

MANILA, Philippines - China-based conglomerate Huagong Tech Co. Ltd has submitted a proposal to provide a technology solution that would curb the smuggling of cigarettes and safeguard the revenue collections of the National Government, challenging the proposal of Swiss firm SICPA and that of Philip Morris and Fortune Tobacco Corp. (PMFTC).

A member of the ways and means committee of the House of Representatives said Huagong Tech has offered to provide its hologram-aided stamp tax technology that could not be counterfeited to make sure that correct taxes on cigarettes are paid and at the same time prevent rampant smuggling in the country.

Batangas Rep. Tom Apacible said the Chinese firm based in Wuhan province promised to provide its technology at a price much lower than the P0.62 per pack proposal of Swiss firm SICPA and also that of PMFTC’s “Codentify” technology.

Apacible, a former commissioner of the Bureau of Customs (BOC), said officials of the Chinese firm flew into the country late last month and met with BIR Commissioner Kim Jacinto-Henares.

He pointed out that the proposal of Huagong could help solve the country’s smuggling problems.

“I hope the government would consider this,” Apacible said referring to the proposal of the Chinese firm that is now pending before the National Economic and Development Authority (NEDA).

Huagong Tech has specialized in laser, opto-electronic and holography industries for long term. The main products are PTC/NTC thermistors, optical communication modules, holographic anti-counterfeiting and packaging products, whole sets of laser equipment and processing equipment, Laser welded diamond tools and other related products.

It has specialized in laser, opto-electronic and holography industries for long term. The main products are PTC/NTC thermistors, optical communication modules, holographic anti-counterfeiting and packaging products, whole sets of laser equipment and processing equipment, Laser welded diamond tools and other related products.

It also established the R & D centers in USA, Australia and other countries. The products have been exported to overseas market successfully and abundantly and obtain high acknowledgement and good feedback from clients. It is looking for business cooperation in the whole world.

Apacible said efforts to implement an efficient excise tax system whether multi-tiered or single uniform rate would be useless if unabated smuggling of tobacco and alcohol products continues.

PMFTC has announced its readiness to offer government a cheaper technology that uses a numeric bar-code system, which costs only less than P0.10 per pack against SICPA’s P0.62 per pack offer.

The Aquino government has junked SICPA’s unsolicited proposal for being costly and not suited to the needs of the government.