BIR to meet with cigarette firms on fake tax stamps issue

MANILA, Philippines - The Bureau of Internal Revenue (BIR) said yesterday it is planning to convene all players in the cigarette industry to get to the bottom of the proliferation of fake tax stamps in different parts of the country.

BIR commissioner Caesar Dulay said the bureau would invite all cigarette companies to get their recommendations in addressing the rampant manufacture and use of fake tax stamps in cigarette packages.

“What we are looking at is the proliferation of fake stamps which affect all the manufacturers. That is why I am planning to meet with them (cigarette companies) for them to give their recommendations,” Dulay told reporters on the sidelines of BIR Manila’s 2017 Tax Campaign Kick-off program.

The commissioner said the meeting would happen after the BIR concludes all its tax campaign launches.

Dulay clarified that the BIR is not singling out cigarette manufacturer Mighty Corp., which was served with a letter of authority by the bureau earlier. The bureau said it would expand its investigation to include all firms in the industry.

“What we are trying to do is look at the root and the source of fake stamps so all the cigarette manufacturers, we’ll invite them,” he said.

Jesus Clint Aranas, BIR deputy commissioner for legal service, said the bureau is currently processing the letters of authority it will issue to other cigarette firms.

Aranas said the BIR is looking at finishing its investigation immediately within the year, since there is a significant revenue loss from the proliferation of tax stamps in the country.

“We are estimating (losses) at P10 billion to P15 billion and with the proper enforcement maybe we can increase the collection, especially since we have to meet the demands of the P1.829 trillion (target),” he said in a separate interview.

According to Aranas, the BIR suspects that there is more than one player involved in the use of fake tax stamps, considering the amount of foregone revenues it causes.

Dulay said a redesigning of the BIR tax stamps is in order after reports on the rampant use of counterfeit stamps surfaced.

“There’s a contract, now if it is compromised, then a redesigning and correction of the stamp is in order. Why are there a lot or fake stamps released outside? So that’s what will happen,” he said.