Why Sin Tax Reform Law Should Be Fully Implemented?

Republic Act 10351, or the Sin Tax Reform Law, is primarily a health measure with revenue implications, but more fundamentally, it is a good governance measure. The Sin Tax Law helps finance the Universal Health Care program of the government, simplified the current excise tax system on alcohol and tobacco products and fixed long standing structural weaknesses, and addresses public health issues relating to alcohol and tobacco consumption.

Recently, the Department of Finance (DOF) urges Congress to let sin tax law 'run its course'. Finance Secretary Carlos Dominguez III has encourage the congressional oversight committee on the Sin Tax Reform Act to start reviewing the revenue and health impact of the tax rates mandated under this law to determine what measures should be undertaken by the Legislature once the statute matures in 2017. He said that the the Sin Tax Reform Act is a very good law and it should be fully implemented and allowed to run its course.

Besides, RA 10351 mandates that the current two-tiered tax rate merge into a unitary tax rate of P30 per cigarette pack for all brands starting Jan. 1, 2017, and the rate indexed to inflation by increasing it to 4 percent annually.

Dominguez also added that DOF expects “this review to occur” as mandated by law and for it to “be done well to inform [us] what we should be doing in the future.”

SOURCE: http://www.dof.gov.ph/index.php/dof-urges-congress-to-let-sin-tax-law-run-its-course/ and http://www.dof.gov.ph/index.php/advocacies/sin-tax-reform/

Prescribing the Use of Internal Revenue Stamp Integrated System (IRSIS) for the Ordering, Distribution and Monitoring

Revenue Regulations No. 7-2014 was issued by the bureau Prescribing the Affixture of Internal Revenue Stamps on Imported and Locally Manufactured Cigarettes and the Use of the Internal Revenue Stamp Integrated System (IRSIS) for the Ordering, Distribution and Monitoring Thereof.

Under Section 4 of the Regulations refers to the ordering of Internal Revenue tamps through IRSIS and BIR Approval thereof. - Each and ever order shall be placed only through the stamp ordering module of IRSIS by the authorized user. All orders submitted on or before twelve o'clock noon (12:00 nn) shall be processed by BIR within the said working day. Accordingly, all orders submitted after 12:00 nn of the working day shall be processed the following working day.

Upon  approval by BIR of the order, an email notification shall be received by the said authorized user confirming the order with the date of release of the internal revenue stamps from the APO-designated plant. The internal revenue stamps shall be released by APO to the importer/local manufacturer of cigarettes not later than fifteen (15) calendar days from the date of approval by the BIR of the submitted order.

All orders of internal revenue stamps, after having been duly approved by the BIR, are no longer allowed by IRSIS to be cancelled or changed by the authorized users of importers and manufacturers of cigarettes. Accordingly, the authorized users shall ensure that the correct information is encoded prior to the submission thereof in the ordering module of IRSIS.

Please refer  http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202014/RR%207-2014/RR%207-2014.pdf of the full text of Revenue Regulations No. 7-2014.