House panels approves proposal requiring use of security paper in gov't transactions

Rep. Hermilando Mandanas (2nd District, Batangas), chairman of the house body said the use of security paper in the transaction of public offices will enhance tax monitoring and collection, and boost government revenue generation.

The House Committee on Ways and Means has approved a bill requiring all government offices to use security paper made from indigenous materials or water-marked security paper in their receipts and invoices, permits, clearances, official papers or documents.

Rep. Hermilando Mandanas (2nd District, Batangas), chairman of the house body said the use of security paper in the transaction of public offices will enhance tax monitoring and collection, and boost government revenue generation.

Mandanas said the use of security paper will also prevent tax fraud and graft and corruption in the government's tax collection efforts, as caused by the proliferation of fake receipts, invoices, orders of payment and other official government forms.

The approved measure, House Bill 4224, is in substitution of HB 869 filed by Rep. Simeon Datumanong (2nd District, Maguindanao) and HB 3210 authored by Buhay Party-list Reps. Mariano Velarde and Irwin Tieng.

Under the bill, security paper shall bear authorized security feature duly etched and embedded in the paper during its manufacturing process. It shall be especially designed for the printing of official receipts, sales invoices, clearances and other official papers or documents.

Among the covered institutions are all government agencies and instrumentalities, including government-owned and –controlled corporations, all local government units which shall issue security paper to all natural and juridical persons transacting business with them.

The bill mandates the Bangko Sentral ng Pilipinas (BSP) through its Banknotes and Securities Printing Department (BSPD), in coordination with the said government agencies and instrumentalities, GOCCs and LGUS, shall develop the procedures for printing of security paper.

The bill provides that the Department of Finance, in coordination with the National Printing Office (NPO), shall prescribe and formulate the size and form of security paper within two months from the effectivity of the law based on the bill.

Under the bill, those who fail to comply with the use of security paper shall be subjected to all appropriate sanctions and penalties provided for in the National Internal Revenue Code and other pertinent laws, rules and regulations.

 

Source: Public Relations and Information Department

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