MANILA — The House of Representatives approved on Monday a measure seeking to strengthen excise tax administration and eliminate revenue losses from the illicit trade of tobacco and related products, by introducing a mandatory tracking and tracing system for the manufacturing, importation, storage, removal, distribution and sale of all tobacco products.

Voting 177-4-0, the lower chamber approved House Bill No. 11286 on third and final reading during the plenary session.

Under the measure, cigars, cigarettes, vapes and tobacco products must be affixed with a stamp that has "physical or digital features" subject to excise tax in the prescribed manner and form.

"The system shall use secure digital markers utilizing unique identifier codes printed on or incorporated in the products which shall allow the authorities and the general public to verify the product's origin, manufacturer, production date and other relevant data," the bill read.

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The Bureau of Internal Revenue shall manage the development, operation and oversight of the tracking and tracing system, including consultation with manufacturers to ensure its operability and compatibility.

Under the bill, all manufacturers and importers are required to comply with the system and make sure all products are properly marked. The measure also gives the BIR, through the National Telecommunications Commission, the power to remove illicit product listings on digital platforms. 

An Inter-Agency Tobacco Illicit Trade Council will be created to implement appropriate measures in suppressing illicit trade of covered products.