A SENATOR has filed a resolution that seeks to look into the decrease in government revenues caused by the smuggling of goods subject to excise tax such as cigarettes and vape products.
“Despite the efforts of various government agencies, illicit trade and smuggling of excisable products remain rampant across the country,” Senator and Ways and Means Chairperson Sherwin T. Gatchalian said in Senate Resolution No. 1243, which he filed on Nov. 28.
“And because of its far-reaching effect, it is imperative for the government to re-evaluate its approach in combating smuggling and illicit trade in the country.”
Citing Bureau of Customs data from October 2023 to August this year, the government has confiscated about P6.5 billion worth of smuggled vape products.
The Philippine National Police Criminal Investigation and Detention Group last month confiscated about P2.4 billion worth of fake cigarettes and smuggled equipment.
Secretary Ralph G. Recto in November said that the government is losing about P52 billion yearly due to tobacco and vape smuggling.
Broken down, P35 billion of the amount is from smuggled tobacco products, while P17 billion is from smuggled vape products.
“Aside from it (smuggling) reduced government revenues, smuggling and illicit trade also undermines the rule of law, fuels corruption, impairs competitiveness of legitimate business while become a major source of income for organized groups and taints the reputation of our country in the global scene,” Mr. Gatchalian said in the measure, which is in aid of legislation. — John Victor D. Ordoñez
