Philippines To Introduce Excise Tax Stamps On Tobacco

22/09/2014 12:00 - 674 Views

The Philippines' Bureau of Internal Revenue (BIR) has issued Revenue Regulation No. 7-2014, which requires the placing of its stamps on all imported and locally manufactured cigarettes to demonstrate that excise tax has been paid.

Locally manufactured cigarettes, whether for domestic sale or for export, have to carry the stamp by October 1, 2014, this year, while all imported cigarettes must carry a stamp by February 2015.

The law amendment that reformed "sin taxes," which took effect in the Philippines at the beginning of 2013, specifically stipulated that the BIR has a mandate to prescribe, provide, and distribute internal revenue stamps with adequate security features for affixture on each pack of cigars and cigarettes. An internet-based Internal Revenue Stamp Integrated System (IRSIS) has also been developed to cover the ordering, distribution, and real-time monitoring of such products.

All importers and local cigarette manufacturers have to be registered under the IRSIS before they pay the excise duty and purchase stamps. In addition, for the purposes of placing an order for stamps through IRSIS, the excise tax payment can only be made through the BIR's Electronic Filing and Payment System (eFPS). Accordingly, all importers and local manufacturers will also need to be enrolled with the eFPS.

Source: Tax News