MANILA, Philippines (Xinhua) - The government has approved a revenue regulation that requires affixing of internal revenue stamps on imported and locally manufactured cigarettes, a senior government official said today.
The revised regulation also prescribes the use of the Internal Revenue Stamp System (IRSIS) for the ordering distribution, and monitoring of cigarettes, said Bureau of Internal Revenue Commissioner Kim Henares.
The regulation is central to the government's anti-smuggling strategy concerning tobacco products, as the stamps serve as effective tracking and audit measures ensuring due excise taxes have been paid for each product, she said.
"This measure will strengthen our capacity to combat smuggling of tobacco products. We believe in implementing regulations with enough teeth to bite down on smugglers who are intent on depriving the nation of critical resources for greed and private gain," Henares stressed.
The cigarette stamping regulation will be boosted by a provision allowing the BIR to conduct a study and cause the installation of a system of Close Circuit Television Monitoring System on all production and withdrawal points in the premises of the cigarette excise taxpayer for more effective monitoring purposes.
Finance Secretary Cesar Purisima said that the regulation is expected to increase tax collection from the tobacco industry.
In 2013, revenues from the Sin Tax Law were 51 percent higher than projected, he noted.