BIR to upgrade tax stamp security features

THE BUREAU of Internal Revenue (BIR) is considering new security features for excise tax stamps to address the proliferation of fake stamps in the tobacco industry.

On the sidelines of a Senate committee meeting yesterday, Deputy Commissioner Jesus Clint O. Aranas said that the BIR is to take proactive measures in plugging revenue leakages, specifically addressing the security of tax stamps.

Tax stamps, which are proof of paid tax obligations, have allegedly been counterfeited by some tobacco manufacturers to dodge the payment of duties.

“We have to improve the printing, the inks, the tag guns that we are using. There is so much technology on the market, so we are not seeing the leading technology right now. But obviously the mere fact that it is faked, is an obvious sign we need to improve,” Mr. Aranas told reporters yesterday.

Mr. Aranas noted that the tax stamps they produce may be vulnerable to replication, as the government’s printing office, APO Production Unit, uses printers readily available on the market.

“[T]he printer that the APO is using is not a security printer. It is available to the commercial market, so many other people have that kind of commercial printing machine. But they only add on security features… but the printer is available commercially,” he said.

He said that the bureau will focus on improving the security features rather than come up with new designs for the tax stamps.

“We are looking into new designs right now but of course the security features are something that we have to improve on. We cannot be doing the same thing that we did the last time because then the counterfeiters will just adapt,” he added.

Recently, Commissioner Caesar R. Dulay said he plans to sit down with industry representatives to discuss the proliferation of fake tax stamps.

According to Mr. Dulay, the multicompany meeting will be held after the tax kick-off programs this month.

Mr. Aranas noted that at least P10 to P15 billion worth of revenue is lost due to fake tax stamps.

“We have to get to the bottom of this. Because at the end of the day, it’s really to clarify, investigate the whole matter, because we cannot deny the fact that the fake stamps do exist,” he added. —