Philippine BIR Plans to Expand QR Codes on Goods

Regulations by 2FIRSTS.ai
Jun.17.2024
Philippine BIR Plans to Expand QR Codes on Goods
Philippine Bureau of Internal Revenue (BIR) plans to expand QR codes to e-cigarettes, alcohol, and sugary drinks to boost tax compliance.

According to a report from Business Mirror on June 16th, the Philippine Bureau of Internal Revenue (BIR) plans to expand the use of QR codes to products such as e-cigarettes, alcoholic beverages, and sugary drinks. BIR Assistant Commissioner Jethro M. Sabaria stated that the agency plans to transition from a stamp-based system to a digital tracking system starting in the second half of 2025, beginning with tobacco products.

 

Sebraca also revealed that the domestic tax stamps affixed to cigarettes and e-cigarette products to ensure tax compliance are merely a temporary solution by the government, as they have already signed contracts with the tax stamp provider.

 

This is just a simple QR system that can only hold a limited amount of data for consumers to verify the legitimacy of the product's source.

 

The digital system will be implemented in stages, starting with tobacco products. "Sin products" such as tobacco, alcohol, sugary beverages, and e-cigarettes will gradually adopt this digital system, with one item being implemented on average every six months. Sabracard stated that this is a pay-as-you-go system, where an additional fee will be added to each purchased product, ultimately passed on to the consumer.

 

He emphasized that the QR code system is a public-private partnership (PPP) project, and the government will only inherit this system after six to twelve years or when the contract terminates. Unlike the tax ticket system where the government only collects data, the QR code system allows the government to inherit and further enhance the system, addressing any issues that may arise during the market operation period.

 

According to Seb Laka, with these measures in place, producers of "sinful goods" will ensure that their products must undergo BIR approval before being marketed. However, he did not estimate how much this action will contribute to BIR's tax revenue. He stated that if consumers have trust in the products they purchase, tax revenues will increase.

 

Sibelak stressed the importance of government focusing on the implementation of their policies to prevent harm to the public or damage to public health.

 

The primary goal of imposing a consumption tax is to curb consumption. Therefore, you should not expect to see an increase in tax revenue.

 

In 2023, the BIR's consumption tax revenue was 2916.61 billion pesos ($49 billion), which was 12.95% lower than its target of 3350.4 billion pesos ($57 billion).

 

Saiblaca stated that due to changes in consumption habits among Filipinos, the gap between BIR's consumption tax revenue for this year and its target revenue may further widen.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA said tobacco grower organizations from five Americas countries called for stronger regional cooperation and balanced regulation, warning that restrictive policies could pressure farmers and legal supply chains. The article also provides data on major tobacco-producing countries in the Americas.
Special Report
Jun.02
Dutch NVWA Seizes Record 277,000 Illegal Vapes; Video Shows “AL FAKHER” Cartons
Dutch NVWA Seizes Record 277,000 Illegal Vapes; Video Shows “AL FAKHER” Cartons
The Dutch Food and Consumer Product Safety Authority, known as the NVWA, seized more than 277,000 illegal vapes near Rotterdam and nearly 150,000 boxes of nicotine pouches in Utrecht and Rotterdam, calling them the largest batches of such products it has found to date. Video footage released by the NVWA shows some cartons in the warehouse bearing the “AL FAKHER / الفاخر” name, though the agency did not identify brands.
Jul.10
UK HMRC Plans 30,000 Retail Enforcement Actions as Illegal Tobacco and Vape Sellers Face Tougher Crackdown
UK HMRC Plans 30,000 Retail Enforcement Actions as Illegal Tobacco and Vape Sellers Face Tougher Crackdown
The UK government has announced that HM Revenue & Customs (HMRC) will carry out more than 30,000 interventions targeting businesses and retail premises during the 2026-2027 financial year. The actions will focus on tax fraud, illegal goods sales and businesses involved in unlawful activities through retail channels. The government said illegal tobacco and illegal vape sales remain areas of concern. The move shows that UK enforcement against illegal nicotine products is expanding from import and supply channels toward retail-level oversight, alongside the upcoming introduction of the Vaping Products Duty.
Jul.24
FDA Foreign Tobacco Registration Proposal Could Strengthen ENDS Import Oversight, Azim Chowdhury Says
FDA Foreign Tobacco Registration Proposal Could Strengthen ENDS Import Oversight, Azim Chowdhury Says
FDA’s proposed rule requiring foreign tobacco manufacturers to register establishments and list products is more than routine paperwork, Keller and Heckman LLP partner Azim Chowdhury told 2Firsts. He said it could strengthen FDA’s import enforcement, inspections and market surveillance. Chinese e-cigarette OEM/ODM manufacturers, specification developers, brand owners and component suppliers may need to review their roles, product data and U.S. market authorization status.
Special Report
Jun.29
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
Philip Morris Japan (PMJ) announced that it will open “IQOS Flagship Ginza” in Tokyo on September 4, 2026. The location will become the first global flagship space for PMI’s IQOS brand. PMJ said the venue will target adult smokers aged 20 and above and combine product experiences, community engagement and local cultural elements. The design will incorporate Japanese natural aesthetics and traditional craftsmanship. The launch reflects PMI’s broader strategy of strengthening consumer engagement through experiential retail and brand spaces. The existing IQOS Store Ginza is scheduled to close on August 30, 2026.
Jul.21
Japan Health Ministry Cites Limited Evidence in Decision Not to Tighten Heated Tobacco Rules
Japan Health Ministry Cites Limited Evidence in Decision Not to Tighten Heated Tobacco Rules
Japan’s health ministry has proposed not tightening regulations on heated tobacco products to the same level as cigarettes as part of a review of passive smoking measures, with an expert panel broadly agreeing with the proposal, Jiji Press reported.
Jul.10