THE illegal trade of tobacco products has become rampant in Eastern Visayas, resulting in dramatic losses in government tax revenue, according to tobacco industry data.
Citing a report from state-run Philippine News Agency on October 7, 2024, it identified two of the six provinces in Eastern Visayas region wherein high incidence of illicit selling of cigarette brands were recorded.
The rampant tobacco smuggling in the country also resulted in an estimated annual revenue loss between P60 billion to P100 billion, according to the National Tobacco Administration (NTA) in a recent report.
This happened because smuggled and non-tax paid cigarettes are being sold openly in stores and other public areas across the country.
These non-tax paid tobacco products are priced between P3.00 and P4.00 per stick compared to the P8.55 per stick of legitimate and tax-paid cigarette brands, according to the government-run news agency.
The report also identified Mindanao as the epicenter of illegal tobacco selling, with one province reaching 87.5 percent incidence alone, indicating that “nine out of 10 cigarettes sold come from illegal sources” in Mindanao areas.
In Luzon, one province was identified with the highest illegal tobacco incidence of 58.2 percent.
Meanwhile, a global study entitled “Fighting The Dark Underworld” revealed that “an inability to invest in new technology reduces the ability of law enforcement agencies to enforce existing measures and keep pace with the advances being used by organized crime groups to avoid detection and arrest.”
On September 26, 2024, President Ferdinand Marcos Jr. signed into law the Anti-Agricultural Economic Sabotage Act “to prevent the entry of smuggled agricultural products, ensure the correct duties and taxes, and impose higher penalties on violators.”
“Under this law, smuggling, hoarding, profiteering, and cartel operations involving agricultural and fishery products will now be classified as economic sabotage—a non-bailable offense punishable by life imprisonment and fines up to five times the value of the goods involved,” the president said. (SunStar Philippines)