MANILA, Philippines – The speedy passage of Home Invoice No. 11279 to deal with the worsening illicit cigarette commerce downside, which is inflicting billions in income loss, has gained extra help from lawmakers who acknowledge the “plain hurt” it brings to the economic system and public well being.
“We have to fast-track the passage of HB 11279, which seeks to curb illicit commerce and recuperate authorities revenues. We all know that illicit commerce threatens peace and order. The proceeds of illicit commerce have been proven to fund terrorism and arranged crime. Smuggled cigarettes equate to large cash, and it’s a pretty fundraiser for infamous actors. Congress ought to act now—we don’t have the luxurious of time,” mentioned Home Committee on Harmful Medicine Chair Robert Ace Barbers.
Earlier, Deputy Speaker Kristine Singson-Meehan of the 2nd District of Ilocos Sur mentioned, “We’re wanting ahead to the upcoming discussions on HB 11279 within the Home Methods and Means Committee. The stakes are excessive, and each delay in advancing this invoice permits illicit merchants to proceed exploiting loopholes and depriving our nation of much-needed income.”
Ilocos Norte 2nd District Rep. Angelo Marcos Barba, a co-author of the invoice, mentioned, “This measure would convey them (illicit merchants) to their knees as a result of it should minimize off their avenues for smuggling. The federal government is closing in, and their grip in the marketplace is slipping.”
READ: Gatchalian warns illicit cigarette commerce is undoing well being features
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Co-sponsors of the invoice embrace Deputy Speaker and Isabela 1st District Rep. Antonio Albano, Kabayan Social gathering-list Rep. Ron Salo, Ifugao Lone District Rep. Solomon Chungalao, and PBA Social gathering-list Rep. Margarita Nograles-Almario.
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Referring to the rise in illicit cigarette commerce prevalence, Barbers mentioned it “must be addressed now to forestall additional losses in authorities income. Excise tax funds are supposed to profit the individuals, to not line the pockets of illicit merchants. We can’t and won’t enable this evil exercise to proceed.”
In response to Bureau of Inside Income information, tobacco excise tax collections suffered a yearly decline from P176 billion in 2021 to P160 billion in 2022 and P135 billion in 2023. In the meantime, the Meals and Vitamin Analysis Institute reported that grownup smoking prevalence rose from 19% in 2021 to 24.4% in 2023.
Barbers mentioned Home Invoice 11279 exactly goals to deal with this downside instantly. He said, “An intensive overview in Congress ensures we now have a potent regulation to deal with and hopefully put an finish to this felony exercise.”
Barbers, who represents the 2nd District of Surigao del Sur, additionally famous that illicit cigarette commerce has been steadily rising since 2021, “inflicting plain hurt to the economic system, public well being, and society. It has additionally now advanced as a supply of funds for terrorism linked to numerous felony actions.”
Consultants have beforehand warned that the illicit cigarette commerce’s hyperlink to terrorism might result in a possible nationwide safety disaster.
High regional safety knowledgeable Prof. Rohan Gunaratna mentioned throughout his presentation at a safety convention in Manila final June 2024 that terrorist teams, together with Abu Sayyaf and insurgent teams, had been among the many beneficiaries of illicit commerce. He additionally revealed that smugglers used Palawan, Zamboanga, Sulu, and Tawi-Tawi as entry factors for illicit cigarettes from Indonesia and Malaysia.
Bureau of Customs (BOC) Deputy Commissioner Juvymax Uy, throughout a Senate Methods and Means Committee listening to, identified that the Philippines’ porous borders, notably within the southern area of Mindanao, facilitate smuggling. He confirmed that illicit cigarettes are regularly present in Abu Sayyaf camps, suggesting hyperlinks between smuggling and terrorism.
Meehan, one of many invoice’s authors, warned, nonetheless, “that sure teams are spreading deceptive info to undermine the intent of the invoice, which is to cease the unfold of illicit commerce and enhance income collections.”