In a move to combat the smuggling of tobacco products, the Department of Finance has approved the Bureau of Internal Revenue’s proposed revenue regulation mandating the affixture of internal revenue stamps on imported and locally manufactured cigarettes. The revised regulation also prescribes the use of the Internal Revenue Stamp System (IRSIS) for the ordering distribution, and monitoring of cigarettes.

BIR Commissioner Kim Henares said the said regulation is central to the government’s anti-smuggling strategy concerning tobacco products, as the stamps serve as effective tracking and audit measures ensuring due excise taxes have been paid for each product.

“This measure will strengthen our capacity to combat smuggling of tobacco products. We believe in implementing regulations with enough teeth to bite down on smugglers who are intent on depriving the nation of critical resources for greed and private gain,” said the BIR chief.

The cigarette stamping regulation will be boosted by a provision allowing the BIR to conduct a study and cause the installation of a system of Close Circuit Television Monitoring System on all production and withdrawal points in the premises of the cigarette excise taxpayer for more effective monitoring purposes.

Finance Secretary Cesar Purisima, in approving the regulation, said, “In 2013, revenues from the Sin Tax Law were 51% higher than projected. Simple governance measures like this enable the government to push harder in driving our revenue collection performance ever upwards. We are consistently looking at ways to enhance the government’s ability to raise revenues at a critical time requiring much investments to our infrastructure, services, and people.”