BIR to implement tax stamps on alcohol, tobacco

Revia Mae Sibal, Lorrianne Aryenz Valdecantos | January 24, 2018

Photo from lordsofthedrinks.com

After the long delay of tax stamp implementation of alcoholic drinks, the Bureau of Internal Revenue (BIR) will finally start administering it in the first quarter of 2018 but it will be much more complicated than the tobacco tax stamps execution.

Internal Revenue Stamps lntegrated System (Irsis) on Alcohol Program is one of the top priority programs for 2018 as stated in Memorandum Circular No. 6-2018 issued by Internal Revenue Commissioner Caesar R. Dula.

The bureau is currently in touch with APO, an attached agency of the Presidential Communications Operation Office (PCOO), who is currently in-charge with the production of tax stamps for tobacco.

BIR is still reviewing the planned memorandum of agreement (MOA) with APO Production unit according to Finance Undersecretary Antonette C. Tionko.

There were few concerns with the designs of the tax stamps, considering that there are a lot of types of alcoholic drinks and levels of alcohol proofs.

To avoid counterfeiting, new cigarette tax stamps with improved security features will also be released at the same time.

From P1.779 trillion in 2017, BIR is expected to collect up to P2.039 trillion this year. Data from Department of Finance (DOF) shows that the target excise tax collection from cigarettes is P126.9 billion, aside from the P56.2 billion target for the alcohol product.

Under Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law, the excise tax topped on cigarettes must rise to P32.50 per pack from January 1 to June 30, 2018; P35 from July 1, 2018 to December 31, 2019; P37.50 from January 1, 2020 to December 31, 2021; and P40 from January 1, 2022 to December 31, 2023.

In accordance to TRAIN law, the specific tax rate on tobacco products should rise up to 4 percent yearly from January 1, 2024 onwards.