Much-improved and more secure excise-tax stamps for cigarettes and alcohol products are scheduled for rollout within the first three months of the year, according to the Department of Finance (DOF).
Finance Undersecretary Antonette C. Tionko said the new tax stamps for the various “sin” products are to be printed by Apo Production Inc., the service provider for printing government tax stamps.
“I think the BIR [Bureau of Internal Revenue] is still reviewing it. They target [the rollout] in the first quarter,” Tionko said.
The BIR is responsible for the collection of excise tax on cigarettes and alcoholic beverages.
According to Finance Assistant Secretary Mark Dennis Y.C. Joven, the new tax stamps for cigarettes will come out ahead of the tax stamps for alcohol.
“Most likely, the tax stamps for cigarettes will come first,” Joven said.
Finance Secretary Carlos G. Dominguez III acknowledged the design of the bottles used for alcohol are more complex than that of cigarette packs and that this has somewhat delayed the signing of a memorandum of agreement between the DOF and the tax-stamp printers.
“It’s complex. We have three different kinds of alcoholic drinks and there are several levels of alcohol proof,” Dominguez said of the practical problems that need careful consideration.
Based on DOF data, the government expects to collect an estimated P56.231 billion from the excise on alcoholic beverages this year alone.
For tobacco products, the government said some P126.969 billion is expected.
The government’s medium-term revenue program takes into account the passage of the Tax Reform for Acceleration and Inclusion Act that was signed into law by President Duterte last December.
In 2016 total excise-tax collection rose to P163.5 billion, from P158.3 billion in 2015.
The DOF previously said the Internal Revenue Stamps Integrated System program for alcoholic drinks would be pursued this year to help curb the illicit trade of alcoholic beverages in the country.