Cigarette firm JTI Philippines said it looks forward to the full implementation of the proposed Anti-Agricultural Economic Sabotage bill, which provides, among others, that smuggling tobacco and cigarettes worth at least P3 million shall be considered as economic sabotage, a non-bailable offense.
The two chambers of congress ratified the reconciled version of the bills on May 22, before Congress adjourned sine die. It will now be transmitted to the Office of the President for the signature of the President.
In a statement over the weekend, JTI general manager John Freda said the imminent enactment of the measure will send a strong message to smugglers and their accomplices of the government’s commitment to address the worsening problem of illicit trade in tobacco.
“Once the law is ready for full implementation by the mandated agencies, the government has an additional potent weapon in its arsenal to wage war against smuggling syndicates,” Freda said.
“We are looking forward to its full implementation. The crime of tobacco smuggling is indeed an act of economic sabotage because, put simply, it robs the nation’s coffers. Not only does it deprive government of much needed tax revenues but illegal trade cheats everyone: society, consumers and legitimate businesses.” he added.
He noted that illicit tobacco trade in the Philippines is growing at alarming levels, posing a significant threat to the nation’s economy including its agricultural sector.
Estimates from congress and the Bureau of Internal Revenue (BIR) put the foregone losses from illicit tobacco trade between P60 billion and P100 billion a year.
Freda pointed out that cigarette smuggling is a complex problem and not the victimless crime it is perceived to be since it impacts a raft of industries, sectors, agencies and livelihoods — from agriculture, tobacco farmers, tobacco-growing LGUs, retailers and consumers, to law enforcement units and revenue collection agencies.
Furthermore, he said, proceeds from illegal tobacco sales often finance much larger criminal activities such as corruption, the smuggling of drugs and weapons, human trafficking and terrorism.
Under the proposed law, tobacco smuggling as economic sabotage carries the stiffer and heftier penalties of life imprisonment and a fine of thrice the value of the agricultural and fishery products subject of the crime.
The bill repeals the Anti-Agricultural Smuggling Act of 2016 with tobacco — either in its raw or finished form — joining rice, sugar, corn, pork, poultry, garlic, onion, carrots, fish and “cruciferous vegetables” on the ‘economic sabotage’ list.
