Jump to full article: Malaya (ph), 2009-11-11
Author: DENNIS GADIL
Intro: Congressional leaders yesterday slammed the deal for a stamp tax technology on cigarettes and alcohol products being worked out between the Switzerland-based SICPA Product Security SA (SICPA) and the Bureau of Internal Revenue (BIR), saying it is heavily in favor of the Swiss proponent.
Antique Rep. Exequiel Javier, House ways and means chair, also said the BIR could not implement the SICPA proposal through the build-operate-transfer (BOT) scheme without the approval of Congress.
"If it’s a straight regular BOT system, then there’s no need for approval of Congress. But here, there’s a variation of the BOT which needs Congress’ imprimatur," Javier said during a briefing given by the BIR on the SICPA proposal.
He stressed the SICPA contract essentially involves raising revenues, which is the sole prerogative of Congress.
"You cannot raise revenues without Congress’ approval. Aside from the excise taxes that you’re collecting, you’ll be raising revenues. You cannot do it through the BOT," Javier said.
He also rejected claims that the Swiss firm’s tamper-proof stamp-tax technology called SICPATRACE System is "necessary" in combating smuggling and monitoring product withdrawals.
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