President Marcos Jr. on Wednesday directed the Bureau of Customs (BOC) and Bureau of Internal Revenue (BIR) to beef up the campaign against the smuggling of tobacco and vape products in the country.
The President, during the 6th Private Sector Advisory Council-Agriculture Sector Group (PSAC-ASG) meeting in Malacañang, acknowledged the current anti-smuggling measures of the government but wants the BOC and BIR to expand and strengthen their efforts to protect the country’s tobacco industry.
“Enforcement and anti-smuggling and all that. You really have to beef them up and I think we’re doing that. There will be [more efforts] with the Bureau of Customs and BIR so that we can improve performance with that regard,” he said.
BIR Commissioner Romeo Lumagui Jr. reported that his agency has intensified its crackdown against smuggled vape products and it will implement a tax stamp system to determine illicit products.
Special Assistant to the President for Investment and Economic Affairs Frederick Go said the Department of Trade and Industry’s (DTI) Consumer Protection Group has committed to assign a significant number of people to monitor the vape industry.
The PSAC-ASG made several recommendations to the President to protect the tobacco industry which include amending Republic Act (RA) 10845 or the Anti-Agricultural Smuggling Act of 2016 to include tobacco products, and to include a provision setting a minimum retail price for tobacco products and penalties for distributing and selling smuggled products.
PSAC-ASG also recommended that the Department of Budget and Management release funds, as prescribed under RA 4155 or the Virginia Tobacco Industry Act, to the National Tobacco Authority for its Sustainable Tobacco Enhancement Program.
It also called on the DTI to set a deadline for the registration of importers and manufacturers of vapor products and the BIR to start imposing tax requirements on tobacco and vapor products.
“There must also be sustained enforcement of laws against smugglers and retailers of smuggled tobacco and vapor products. Operations involving these products should also be reported to the Office of the President on a monthly basis,” PSAC-ASG said in a news release.
The Philippine tobacco industry provides livelihood to 2.2 million Filipinos while tobacco excise tax makes up 4 percent of total government revenues. It contributed P135 billion in 2023.
The government earmarks 50 percent of excise tax collection for the Universal Health Care under the Department of Health and Philippine Health Insurance Corp. as well as for the Health Facilities Enhancement Program.
