Aside from the proposed QR codes on cigarettes, the Bureau of Internal Revenue (BIR) is also planning to use it for vape products, alcohol and sweetened beverages.
BIR Assistant Commissioner Jethro M. Sabaria told reporters that the agency will shift from a stamps-based system to a digital track-and-trace system starting with tobacco products in the second half of 2025.
Sabariaga said the internal revenue stamps affixed to cigarettes and vape products to ensure tax compliance are just “a stopgap measure” of the government because of its existing contract with the stamp provider.
“It’s just a simple QR system. You can have limited data just to verify whether the goods that you are procuring came from legitimate sources,” he said.
The digital system will be applied on a staggered basis, which will start with tobacco, followed by a “sin product” every six months, such as alcohol, sugar-sweetened beverages and vape products.
“It’s a pay-as-you-use system so it’s tacked on every product that you buy,” Sabariaga said, adding that the cost is passed on to the consumer.
He noted that the QR code system will be a public-private partnership (PPP) project which the government will inherit after 6 to 12 years or after the end of the term of its contract with provider.
Unlike the tax stamp system in which the government only obtains data, the QR code system will enable the government to inherit the system so it could further improve and address the problems it might encounter during the life cycle of the market, Sabariaga said.
With the QR system in place, he expects manufacturers of sin products will ensure that their products will go through BIR before putting it out in the market.
Sabariaga, however, did not give an estimate as to the contribution of the initiative to the revenues of the BIR. He said revenues will “grow further” if consumers trust the products they are buying.
“I think the most important thing about it is that the consumers will have a greater degree of reliability and authenticity of the products that they are purchasing,” he said.
Sabariaga said the government should be concerned about the exercise of its policy—the power to prevent public harm or injuries to public health.
“The main objective in imposing these excise taxes is to deter consumption. So you should not be expecting bigger revenues,” he added.
The BIR targets to collect P2.848 trillion in revenues this year, which was revised downward by the Development Budget Coordination Committee (DBCC), from its initial goal of P3.055 trillion.
Excise tax collection of the BIR amounted to P291.661 billion in 2023, which was 12.95 percent lower than its target of P335.04 billion.
Sabariaga said the gap between the BIR’s current excise tax take from its target collection could further widen this year due to changes in the consumption habits of Filipinos.
Image credits: BusinessMirror file photo
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