The National Tobacco Administration (NTA) has supported a call for unified actions and stronger regulatory measures to combat the reported illicit trade of tobacco and vape products.
NTA Administrator and CEO Belinda S. Sanchez said that a coordinated approach and comprehensive regulatory initiatives will help mitigate the impact of illicit trade ensuring a secure environment for the tobacco industry.
She also said that strengthened national policies, enhanced regional cooperation, improved enforcement mechanisms, and increased public awareness are needed against illicit tobacco trade.
As one of the government’s regulatory agencies, the NTA has maximized its regulatory functions to help end illegal cigarette manufacturing and trading in the country.
To increase awareness of the ill – effects of tobacco smuggling, the NTA has conducted various communication campaign activities such as the distribution of posters, webinars, forum, and an audio-video – presentation on social media and its radio program.
“The illicit tobacco trade is a significant challenge, adversely impacting government revenues, public health, national security, and the livelihoods of the Filipino farmers,” she said.
At present, there are 2.2 million Filipinos who are financially dependent on tobacco including more than 430,000 farmers, farm workers, and their family members.
In the latest monitor of the NTA, it has been observed the high prevalence of illicit tobacco trade in Central Luzon and the rampant proliferation of illegal cigarettes in Mindanao. Many of the cigarettes that were previously confiscated were smuggled, illicit whites with no tax stamps, no Graphic Health Warnings, and unregistered brands.
The occurrence of illicit tobacco trade has caused a gradual decrease in revenue collection by the national government as it incurred a loss of up to P100 billion annually, according to the estimates of the Bureau of Internal Revenue (BIR).
Based on the estimates of the 2023 Euromonitor Report, the rising trend of the illicit tobacco trade and vape products contributed to the decline of legal tobacco products by 35.2% from Calendar Years (CYs) 2019 to 2023. Likewise, the national government was deprived of the collection of excise tax in the amount of P109 billion as compared to the projected collection of P244 billion for CY 2023. ### (By Freddie G. Lazaro, DA-NTA)
Photo Caption: NTA Administrator and CEO Belinda S. Sanchez speaks during the recent senate hearing on the Committee on Ways and Means joint with the Committee on Trade, Commerce, and Entrepreneurship presided over by Senator Sherwin T. Gatchalian. The hearing is focused on the discussion of the current concerns on agricultural products smuggling and illicit trading. ### (By Freddie G. Lazaro, DA-NTA)
