The Philippine Tobacco Institute (PTI) has pegged the minimum price of cigarettes at P82.49 per pack of 20 sticks, in an aim to eradicate smuggling and the selling of illegal cigarette products.
PTI, the organization of registered manufacturers of cigarettes and tobacco products, released its advisory yesterday in relation to the recently-issued Bureau of Internal Revenue (BIR) Revenue Memorandum Circular No. 79-2022 which cites the floor price per pack of cigarettes.
PTI reiterated in its statement that only BIR-registered cigarettes listed under the BIR circular may be legally sold in the Philippines.
It also emphasized the need for cigarette brands to include the mandatory graphic health warnings with text in Tagalog in front and English at the back; and the Tarsier or Vinta design tax stamps required as proof of tax payment.
PTI listed the fines that could be imposed on tobacco manufacturers, distributors and sellers for violating the provisions: fines of up to P500,000 and imprisonment of up to six years for violators of the minimum price of cigarettes, P200,000 to up to five years of imprisonment for violation on graphic health warnings, and up to P1 million fines to eight years of imprisonment for violation on the tax stamps.
“Any product not included in the list, no BIR tax stamp, absence of the mandated graphic health warning and product which is lower than the floor/minimum price shall be considered as unauthorized/illicit subject to seizure/apprehension,” according to the BIR circular.
PTI said it is estimated that P26 billion is lost in illicit tobacco trade annually.
According to a Euromonitor report, six out of 10 cigarettes sold in Mindanao are illegal. The Bureau of Customs (BOC) and the BIR along with allied agencies are working together to safeguard the country against the proliferation of illicit tobacco products.
During the first quarter of 2022, BOC reported that P132.56 million worth of cigarettes were seized as a result of its anti-smuggling efforts.
PTI enjoins the public to report unauthorized distributors of tobacco products through 0917-I-REPORT or 0917-4-737678.
