BIR investigates cigarette maker for supposedly using fake tax stamps

The Bureau of Internal Revenue (BIR) has ordered an investigation into allegations of counterfeit tax stamps used in the packs of cigarette maker Mighty Corp., the Department of Finance (DOF) said Wednesday.

BIR Commissioner Caesar Dulay has ordered a probe into the alleged practice of using bogus tax stamps by Mighty Corp. and other tobacco companies, the DOF noted in a statement.

“Commissioner Dulay did the right thing in ordering an investigation after receiving field reports from our revenue officials," Finance Secretary Carlos Dominguez III said.
 
“This is a matter of serious concern and I’m instructing the BIR to tighten monitoring and enforcement,” Dominguez noted.

Officials from Mighty Corp. were not immediately available to comment on the matter.

GMA News Online also tried to reach the office of Dulay but text messages and calls were left unanswered.

In 2014, the BIR launched the Internal Revenue Stamps Integrated System mandating the issuance of permanent tax stamps on cigarette packs to replace the detachable stickers previously used on tobacco products sold in the country. The idea was to ensure proper collection of taxes.

Last November, the BIR and the Bureau of Customs (BOC) seized over P1 billion of fake cigarettes and approximately P175 million in tax equivalent of fake tax stamps.

“These sustained efforts show that the Duterte administration’s campaign against corruption and other illegal activities would be pursued with the same zeal as its war against narco traffickers and illegal drugs,” Dominguez said.

In a separate report to the DOF, the BIR said it shut down the premises of an unauthorized manufacturer of various cigarette brands in Lubao, Pampanga and confiscated  5.5 million pieces of fake unused cigarette strip stamps worth approximately P175 million in excise tax and value-added tax. — Ted Cordero/VS, GMA News