THE anti-smuggling campaign of the Bureau of Customs (BOC), particularly against both smuggled and locally-produced illicit cigarettes has earned high praises from the tobacco industry, describing its effort as ‘fabulous work.’
In a television interview by ‘Market Edge’ that airs over ANC Digital last January 6, 2022, Philip Morris Fortune Tobacco Corp. (PMFTC) president, Dennis Gorkun, said the “fabulous work” by the BOC and the Bureau of Internal Revenue (BIR) in combatting cigarette smuggling and illegal production of cigarettes helped the industry in coping with the yearly increase of ‘sin taxes’ as provided for under the ‘TRAIN Law’ or RA 10963.
For this year, an additional P5.00 was added to the excise tax being paid by smokers for every pack of cigarettes, including the so-called ‘vape products.’
The so-called ‘sin taxes’ are used to fund the country’s universal health care system.
“It (tobacco industry) situation) could have been much, much worse if not for the great work performed by the agencies of the Department of Finance, Bureau of Customs and Bureau of Internal Revenue, which have recorded a highest on record interceptions of smuggled goods as well as domestically produced illegal cigarettes.
“So, they have done a fabulous work. That is why we’ve seen a relatively small uptick of smuggled cigarettes in 2021,” Urkin said.
Urkin added that while the industry is ready for any increase in taxes, saying the “tax (increase) debate is always there,” the industry’s main worry is the proliferation of smuggled and illicit products in the market.
He noted that the industry is contributing some 6 percent in taxes to the government and since last year and for this year, their joint partnership with the Lucio Tan Group has allocated P2 billion in fresh investments that is also expected to benefit tobacco farmers, especially in the Ilocos region.
Gorkun said as the government imposes more taxes on legal tobacco producers, the crackdown on smuggled and illicit cigarettes should also increase.
In a related development, the Port of Cagayan de Oro last January 6, 2022, announced the apprehension of a shipment of smuggled cigarettes at the Mindanao International Container Terminal in Tagoloan, Misamis Oriental worth P8 million.
District Collector Atty. Elvira Cruz, said he she immediately issued a ‘pre-lodgment control order’ (PLCO) against the shipment from China consigned to a certain ‘Ceri Rey Viola,’ based on the information provided by the Intelligence Group (IG) under Deputy Commissioner Rainier Ramiro, as far back as December 26, 2021.