The House Committee on Ways and Means approved the substitute bill to House Bill 10329 seeking to strengthen the administration of tax on tobacco products, cigars, cigarettes, heated tobacco products, vapor products and novel tobacco products.
Albay Representative Joey Sarte Salceda, principal author of HB 10329, said the illicit tobacco trade has serious implications as smokers turn to cheaper alternatives, leading to lower taxes.
“Illicit tobacco trade makes cheap cigarettes accessible to consumers, especially the poor and the youth, and leads to losses in tobacco tax revenues.”
“Illicit tobacco trade makes cheap cigarettes accessible to consumers, especially the poor and the youth, and leads to losses in tobacco tax revenues, which, through the Sin Tax Reform Law, are earmarked for the implementation of the Universal Health Care (UHC) Law. UHC ensures access to cost-effective and quality healthcare for every Filipino,” Salceda said.
“Through good enforcement, good governance and good institutions, Illicit tobacco trade can be neutralized.”
Through good enforcement, good governance and good institutions, the veteran legislator believes that Illicit tobacco trade can be neutralized.
As of May 2023, the seasoned lawmaker said the Bureau of Customs (BOC) has destroyed 19,419 cases and 667 reams of smuggled cigarettes worth P1.44 billion.
“This shows that anti-smuggling campaigns can be successful in recouping revenues. But much more has to be done,” he stressed.
Salceda said the substitute bill seeks to impose heavy penalties on perpetrators of illicit tobacco trade.
It also proposes the creation of an Inter-Agency Tobacco Illicit Trade Council that would be chaired by Department of Finance.
