THE Philippine Tobacco Institute (PTI) has expressed alarm over the blatant selling of illegal cigarettes smuggled from neighboring countries in many parts of Mindanao to the detriment of consumers and the local economy.
These illicit cigarettes are openly displayed and sold in thousands of stores in the provinces of Bukidnon, Lanao del Sur, Lanao Del Norte, Iligan, Misamis Occidental, the Zamboanga Peninsula and Cotabato, the PTI stressed.
PTI president Rodolfo Salanga advised the public not to buy these illegal cigarettes which are cheaply sold in sari-sari stores and public markets at P18 to P20 per pack as these are unregistered and sold without paying taxes to the government. Today the excise tax due per pack is mandated to be at least P25 per pack.
The PTI has also launched a print advertising campaign warning consumers not to take chances on these illegal products. The campaign is running in several local newspapers based in Mindanao.
The ad campaign shows pack images of commonly sold smuggled cigarettes Far Star, Fort, American Legend, Union, Navy and Gudang Garam. Based on their packs, these products were supposedly manufactured in China, Indonesia, Malaysia or Cambodia.
“You are not sure of the content and the source of these cigarettes. They are not made to the requirements of the Philippines, and often feature no or non-compliant health warnings,” the PTI said.
Salanga said illegal cigarettes are subject to confiscation.
“The retailers may also be liable for taxes on these products and may also be subject to criminal prosecution,” he added.
“As we call on the public to stop patronizing these illegal cigarettes, we also call on local officials and law enforcement agencies to seize these smuggled products and go after the criminal syndicates behind the proliferation of these illegal cigarettes,” Salanga said.
He said everyone is aware of the country’s porous borders especially in the South but such challenges should not stop our law enforcers from being vigilant in implementing our laws.
The PTI cited as well the huge losses in tax revenues and customs duties from the illegal entry of these illicit cigarettes which local government units could use for the benefit of their respective constituents.
Salanga also raised another alarming revenue leakage problem in Mindanao citing a recent survey that showed less than half of the cigarette packs sold in Davao del Sur carried the new tax stamps of the Bureau of Internal Revenue. The tax stamp serves as proof that excise tax has been paid.
He said a World Bank survey as of February 7 showed only 46.5% compliance in Davao del Sur compared to the national average of more than 90%. The new tax stamp requirement of the BIR has been in place since December 2014. (PR)