BIR to implement tax stamp system vs smuggled tobacco, vape products

The Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. told President Ferdinand Marcos Jr. that the agency will implement a tax stamp system to determine the smuggled tobacco and vape products, Malacañang said Thursday.

Lumagui said this during the 6th Private Sector Advisory Council-Agriculture Sector Group (PSAC-ASG) meeting in Malacañang earlier this week following Marcos' directive to the BIR and Bureau of Customs (BOC) to enhance tobacco industry protection against smuggling.

While Marcos acknowledged the government's anti-smuggling initiatives, Malacañang said Marcos wanted the BOC and BIR to step up their enforcement.

"Enforcement and anti-smuggling and all that. You really have to beef them up and I think we're doing that," Marcos said.

"There will be (more efforts) with the Bureau of Customs and BIR so that we can improve performance (in) that regard," Marcos added. 

In the same meeting, Special Assistant to the President on Economic and Economic Affairs Frederick Go said the Department of Trade and Industry (DTI) Consumer Protection Group assured him that a sizable team would be tasked with keeping an eye on the vape business.

For its part, the PSAC-ASG came up with a number of suggestions and policy requirements to protect the tobacco business. 

As required by the Republic Act No. 4155, the advisory group pushes for the Department of Budget and Management (DBM) to give the National Tobacco Authority (NTA) the money it needs for the Sustainable Tobacco Enhancement Program (STEP). 

It also asked that the Anti-Agri Smuggling Act of 2016 be changed to include tobacco goods.

The group also wants rules on minimum retail price (MRP) and punishments for selling and spreading illegal goods. 

According to the group, the Department of Trade and Industry (DTI) should set a date for registering importers and makers of vapor products.

The BIR should also start requiring tobacco and vapor products to pay taxes.

The group also said that laws must be strictly imposed against people who smuggle tobacco and vapor goods and stores that sell them. 

It also said that operations involving these goods should be reported to the Department every month. 

Two and a half million Filipinos make a living in the tobacco business.

The tobacco excise tax brings in P135 billion a year, which is 4% of all government income. 

The government sets aside half of the excise tax money it gets to fund Universal Health Care (UHC) through the Department of Health (DOH) and PhilHealth, as well as the Health Facilities Enhancement Program (HFEP).