Sicpa says its project will broaden revenue base, close budget deficit

(The Philippine Star) Updated December 17, 2010 

MANILA, Philippines - Sicpa Security Solution SA yesterday told the Congress its cutting-edge security project designed for a foolproof tracking of domestic cigarette and cigar production would put flesh into President Aquino’s commitment to expand the country’s revenue base and close the ballooning budget deficit without government having to impose new taxes.

In a position paper submitted to the oversight subcommittee of the House committee on ways and means, Sicpa director Jean-Francois de Saussure said this project will enable the Aquino administration to harness state-of-the-art technology in running after tobacco smugglers and, more importantly, comply with the country’s formal commitment in the global war on tobacco consumption.

Saussure informed this House subcommittee headed by Rep. Giorgidi Aggabao that Sicpa remains fully committed to the implementation of its project because it will spell a slew o benefits for the Filipino people.

Such benefits range, he said, from additional excise tax revenues that may exceed P100 billion in just seven years to higher public health spending that will let Manila expand health insurance coverage and meet its commitments on the worldwide campaign against smoking.

He noted that as a signatory to the World Health Organization Framework Convention on Tobacco Control (FCTC), the Philippines has to deliver on its commitments.

Saussure pointed out that WHO Director-General Margaret Chan has given a stronger impetus for signatory-countries to comply with their commitments with her declaration of the global campaign against tobacco consumption as “an epic battle between the protection of public health and the pursuit of corporate wealth.”

During the FCTC conference in Uruguay last Nov. 15, Chan further said, “This is a ruthless pursuit of wealth, with no regard for the damage tobacco products cause to health.”

Aside from boosting tax collections and plugging leakages, this proposed cutting-edge technology solution to strengthen monitoring of domestic cigar and cigarette production would vastly improve excise tax collections and plug multibillion-peso tax leakages, Saussure said.

It would also allow the country, he said, to reap a social windfall in terms of more jobs for tobacco industry workers, better health insurance coverage for ordinary Filipinos, and more livelihood and agro-industrial projects for provinces producing burley and native tobacco.

“We at Sicpa firmly believe that the Project is necessary because it will bring in much needed revenue and benefits to the country,” Saussure said. “Given the gnawing budget deficit which is expected to reach P290 billion for 2011, revenue-enhancing mechanisms should be a priority program of the BIR (Bureau of Internal Revenue) with the support of the legislative branch of the government, more particularly by this Honorable Committee.”

Sicpa is known worldwide for the supply of security paper like bank notes (the American dollar and the euro); its partnerships with governments on excise tax collection efforts like in Brazil. Turkey and Malaysia; its role as adviser to central banks and national and state governments; and its partnerships on security initiatives such as the US Security Service and Interpol.

On the domestic front, Sicpa has partnered for over two decades with the Bangko Sentral ng Pilipinas.