Philippines: BIR Issues Notice on Implementing Cigarette Tax Stamps

  Overview: On September 5, 2014, the Philippines Bureau of Internal Revenue (BIR) issued Tax Memorandum No. 72, which mandates the use of the Integrated Revenue Stamp System (IRSIS) for the procurement, sale, affixing, and monitoring of tax stamps on imported and locally produced cigarettes.<\/strong><\/p>   According to reports from Chinese e-cigarette news, the BIR has finally issued a notice to implement the cigarette tax stamp system in an effort to curb the trade of illegal tobacco products.
  On September 5, 2014, the BIR released Tax Memorandum No. 72, which mandates the use of the Integrated Revenue Stamp System (IRSIS) for the procurement, sale, affixing, and monitoring of tax stamps on imported and locally produced cigarettes.
  In the upcoming effective notice, it states that no later than October 1, 2014, all locally produced cigarette packaging "must affix domestic tax stamps."
  "For imported cigarettes, those released from customs warehouses before the new tax stamps take effect on January 1, 2015, shall be allowed to be sold," the BIR added.
  The BIR also stated that all locally produced and imported cigarettes must affix the new domestic tax stamps starting February 1, 2015.
  "All relevant cigarette importers and local cigarette manufacturers must participate in the Integrated Revenue Stamp System, and all relevant taxpayers and BIR personnel must undergo necessary briefings/training," the BIR stated.
  However, BIR Commissioner Kim Henares is still waiting for Finance Secretary Cesar Purisima to sign the implementing rules and regulations for the tax stamp system.
  Due to the lack of an order from Purisima, the BIR had to postpone the mandatory implementation of the tax stamps to October 1 instead of September 1.
  However, she noted that tobacco companies can start affixing tax stamps on cigarettes as early as this month, even without BIR authorization.
  "They (cigarette companies) can start using tax stamps as early as this month, even without BIR authorization. But by October, all cigarette companies will be required to implement it," she said.
  Philip Morris Fortune Tobacco Company and Winston cigarette manufacturers—Japan Tobacco International have already pre-ordered the new tax stamps, while Mighty Corporation based in Bulacan is still waiting for notification from the BIR.
  The Integrated Revenue Stamp System is a web-based application that monitors the production and distribution of cigarettes nationwide.