BIR eyes PPP for QR tracker of illicit cigarettes

“Once you open your camera and scan it, it will direct you to a website and then we can see all the details of the products. We can track the producer or the country where it came from if it’s imported.”

MANILA, Philippines — The digital track and trace system that the public can use to spot whether a certain cigarette and vape product is illicit or not will undergo a public-private partnership (PPP) and is targeted for rollout next year.

During the Kapihan sa Manila Bay forum yesterday, Bureau of Internal Revenue Commissioner Romeo Lumagui Jr. said the agency remains in the process of improving its verification system via the planned QR tracker.

Currently, the BIR uses the Internal Revenue Stamp Integrated System (IRSIS) on cigarettes to determine whether excise taxes have been paid. Only the bureau has its own unique device that monitors the commodity.

Now, the planned QR system will allow the public to check whether a product is legitimate or not using their cellphones with all the details going into the system that will enable the BIR to monitor and track a certain commodity.

The BIR floated the idea as early as 2023. The agency wants to put the system in place this year but it encountered delays in the procurement.

“The amount involved is quite big, that’s why it has to undergo NEDA (now Department of Economy, Planning and Development) approval,” Lumagui said.

He said the feasibility study is also up for approval of the Department of Finance, as well as the changes in the terms of reference.

“We are hoping that the full implementation can be done next year,” Lumagui said.

The QR system will allow the BIR to determine where illicit trade of excisable products are concentrated.

It will also address the issue of certain manufacturers pretending to be exporters to escape tax liabilities.

Lumagui said all registered ‘sin’ products would have distinguishing marks through QR codes and stamps to determine legitimacy.

“Once you open your camera and scan it, it will direct you to a website and then we can see all the details of the products. We can track the producer or the country where it came from if it’s imported,” Lumagui said.

The system not only targets to improve BIR collections but also to make enforcement easier.