Prescribing the Guidelines for the Issuance and Accounting of BIR Strip Stamps for Tobacco Products

June 30, 1986 REVENUE MEMORANDUM ORDER NO. 19-86 SUBJECT : Prescribing the Guidelines for the Issuance and Accounting of BIR Strip Stamps for Tobacco Products TO : All Internal Revenue Officers and Others Concerned In view of the provisions of Revenue Regulations No. 7-86 dated June 26, 1986, withdrawing the requirements as to the purchase, cancellation and affixture of internal revenue strip stamps for cigars and cigarettes, the following guidelines are hereby prescribed for the guidance of all concerned: (1) Issuance of BIR strip stamps . - The issuance of BIR strip stamps for cigars and cigarettes is hereby discontinued. However, should some manufacturers desire to continue affixing on their cigars and cigarettes BIR strip stamps instead of their respective paper strips, they shall be required to shoulder the prevailing cost of printing the BIR strip stamps. In such cases, the Revenue Service Chief (Specific Tax) shall issue an authority to purchase strip stamps upon a written request from the particular manufacturer. Henceforth, the same procedures in the issuance of BIR official labels shall be followed. The following are the prevailing cost of printing of the strip stamps for cigars and cigarettes, which shall be the bases for the sale thereof: Item Cost Per Piece a. Cigarette strip stamps P0.015 b. Strip stamps for cigars (GPO series) 0.03 The above unit costs are subject to change depending on the rates that the authorized printer/s will charge this Bureau in the future. On the other hand, issuance of strip stamps for chewing and smoking tobacco shall continue without change. 2. Accounting of strip stamps for cigars and cigarettes and other tobacco products . - The balance of the different denominations for cigars and cigarette strip stamps as of June 30, 1986, shall be brought forward in the vault ledger of the Accountable Forms Division at the unit cost of acquisition instead of the value of the strip stamps. The Chief Revenue Accounting Division shall close the balance in his books of accounts and effect the transfer of the same to the books of the Chief, Disbursement Accounting Division who shall continue the accounting thereof at the unit cost of acquisition. Accounting of the strip stamps for chewing and smoking tobacco shall continue to be done by the Revenue Accounting Division at face value. 3. Proceeds from the sale of BIR strip stamps for cigars and cigarettes . - Proceeds from the sale of cigar and cigarette strip stamps, shall be treated as miscellaneous income of the Bureau. casia 4. Effectivity . - This order shall take effect on July 1, 1986. (SGD.) BIENVENIDO A. TAN, JR. Commissioner