Abra lone district Rep. JB Bernos has called on the government to conduct a stronger crackdown on the sale of counterfeit or smuggled cigarettes as he stressed that doing so would be beneficial for the local tobacco industry.
“Ang mga peke at smuggled na sigarilyo ay malaking banta sa ating mga tobacco farmers hindi lamang dito sa Abra, kundi sa buong bansa,” Bernos said.
A study by Stratbase Research and Intelligence found that illicit cigarettes continue to proliferate, with the volume reaching 9.52 billion sticks in 2022. It is projected to increase to 11.13 billion by this year.
Meanwhile, the Bureau of Customs reported that P13.2 billion of the 114.8 billion worth of smuggled goods from 2019 to 2023 were illicit cigarette and tobacco products.
Bernos also appealed to sari-sari store owners in his province to refrain from selling fake or smuggled cigarettes to help stem the problem.
The lawmaker highlighted the role that excise taxes on tobacco plays in funding health programs, and how much funding would be lost by the rampant availability of untaxed tobacco products.
The 2023 Sin Tax Annual Report of the Department of Health showed that 58 percent of excise tax collections for 2021 applied in the 2023 General Appropriations Act were derived from tobacco, amounting to P174.13 billion.
By law, excise tax collections from tobacco and heated tobacco products, alcohol, and sugar-sweetened beverages are earmarked for funding the implementation of universal health care, medical assistance, and the Health Facilities Enhancement Program.
Bernos said that local farmers further benefit from excise taxes as tobacco-producing provinces receive 5 percent (not exceeding P4 billion in value) for producing burley and native tobacco, and 15 percent (not exceeding P17 billion) for Virginia tobacco, which are to be used exclusively for programs promoting economically viable alternatives for tobacco farmers and workers.
He lamented, however, that since illicit tobacco products are sold for much cheaper, tobacco farmers are being forced to lower their prices to remain competitive.
“The tragedy is that in their efforts to remain competitive, their livelihood is put into greater risk because of the reduced profitability of their produce,” lamented the solon.
Bernos also appealed to sari-sari store owners in his province to refrain from selling fake or smuggled cigarettes to help stem the problem.
“Malaki po ang maitutulong natin sa ating mga kailyan kung hihindi tayo sa pagbenta ng ilegal na sigarilyo. At tandaan din po natin na ginagawa natin ito para sa ating sarili dahil krimen ang pagbebenta nito. Maawa naman po kayo sa ating mga kababayan.”
The National Tobacco Administration recently announced that store owners that sell illicit tobacco could be slapped fines ranging from P50,000 to P200,000. They could also face imprisonment of two to five years for trademark infringement.
The NTA added that retailers found selling products without the required tax stamps may face five to eight years in prison, while stocking cigarettes without graphic health warnings could result in fines of up to P100,000 and a one-year prison term.
