Gatchalian raises alarm over rampant smuggling, illicit trade of excisable products
January 10, 2025
Gatchalian raises alarm over rampant smuggling, illicit trade of excisable products
Senator Win Gatchalian sounded the alarm over the widespread smuggling and illicit trade of excisable products, including cigarettes and vapes, saying such activities erode revenue collection, pose health concerns, and create peace and order issues.
"My worry is a reversal in smoking prevalence trends. We previously had a win-win situation where smoking prevalence was decreasing while tax collection was increasing. However, the trend has now reversed. We are now in a lose-lose situation with smoking prevalence rising and tax collection declining," Gatchalian said.
Data from the Bureau of Internal Revenue showed that excise tax collection has steadily declined, reaching only P130.9 billion from January to November last year, compared to P134.9 billion in 2023, P160.3 billion in 2022, and P176.5 billion in 2021.
Gatchalian also noted that while the overall cigarette market declined from 103.3 billion sticks in 2014 to 55.6 billion sticks in 2023, the market share of illicit trade rose from 12.2% in 2014 to 19.8% in 2023. "We don't want the value of illicit trade to surpass that of legitimate entities," he said, pointing out that smokers now prefer smuggled cigarette products due to their significantly lower prices.
"In my opinion, enforcement is not enough. We have to look at the other causes of illicit trade in our country. We cannot ignore the theory of incentives given the significant price difference between illicit cigarettes and legitimate ones," he added.
"We must recognize the harm this causes - not just in lost revenue but also on health risks, as these activities operate under the radar," Gatchalian said.
"There should be a whole-of-government approach," he said, urging the finance, trade, and health departments to develop a strategy to address the issue. He also called on law enforcement agencies, including the Philippine National Police and the Bureau of Investigation to investigate those behind the smuggling and illicit trade of excisable products.
The lawmaker noted reports that cigarette smuggling funds terrorist and rebel groups in Mindanao. "Another consequence is that profits from illicit trade are reportedly being funneled into terrorism, making this issue not only an economic concern but also a threat to peace and order," he said.
Gatchalian nagbabala laban sa talamak na smuggling at iligal na kalakalan ng 'excisable products'
Nagbabala si Senador Win Gatchalian laban sa talamak na smuggling at iligal na kalakalan ng mga excisable na produkto, kabilang ang sigarilyo at vape. Ayon sa kanya, ang mga ganitong gawain ay nagpapababa ng kita sa buwis, nagdudulot ng mga panganib sa kalusugan, at nagdudulot ng mga problema sa kapayapaan at kaayusan.
"Ang aking pangamba ay ang trend sa paninigarilyo. Dati, may win-win situation tayo kung saan bumababa ang bilang ng naninigarilyo habang tumataas ang koleksyon ng buwis. Ngunit ngayon, baliktad na ang trend - tumataas na ang bilang ng naninigarilyo habang bumababa ang koleksyon ng buwis," ani Gatchalian.
Batay sa datos ng Bureau of Internal Revenue (BIR), tuloy-tuloy ang pagbaba ng koleksyon ng excise tax, na umabot lamang sa P130.9 bilyon mula Enero hanggang Nobyembre noong nakaraang taon. Ito ay mas mababa kumpara sa P134.9 bilyon noong 2023, P160.3 bilyon noong 2022, at P176.5 bilyon noong 2021.
Idinagdag din ni Gatchalian na kahit bumaba ang kabuuang cigarette market mula 103.3 bilyong sticks noong 2014 patungong 55.6 bilyong sticks noong 2023, tumaas naman ang market share ng iligal na kalakalan mula 12.2% noong 2014 patungong 19.8% noong 2023. "Ayaw nating mangyari na mas malaki pa ang halaga ng iligal na kalakalan kaysa sa lehitimong negosyo," aniya, habang binanggit din niya na mas pinipili ng mga naninigarilyo ngayon ang mga smuggled na produkto dahil mas mura ang mga ito.
"Sa aking pananaw, hindi sapat ang enforcement lamang. Kailangang suriin din natin ang iba pang ugat ng iligal na kalakalan sa ating bansa. Hindi natin pwedeng balewalain ang teorya ng insentibo, lalo na sa laki ng diperensya sa presyo ng iligal na sigarilyo kumpara sa mga lehitimong produkto," dagdag niya.
"Dapat nating kilalanin ang pinsalang dulot nito - hindi lang sa nawawalang kita sa buwis kundi pati na rin sa mga panganib sa kalusugan, dahil ang mga ganitong gawain ay ginagawa nang patago," ani Gatchalian.
"Kailangan ng isang whole-of-government approach," aniya, habang nanawagan sa mga kagawaran ng pananalapi, kalakalan, at kalusugan na bumuo ng isang istratehiya upang tugunan ang isyung ito. Hinimok din niya ang mga law enforcement agencies, kabilang ang Philippine National Police at Bureau of Investigation, na imbestigahan ang mga nasa likod ng smuggling at iligal na kalakalan ng mga excisable na produkto.
Tinukoy rin ng senador ang mga ulat na ang cigarette smuggling ay nagpapondo sa mga grupong terorista at rebeldeng grupo sa Mindanao. "Isa pang epekto nito ay ang ulat na ang kita mula sa iligal na kalakalan ay ginagamit bilang pondo ng terorismo, na ginagawa itong hindi lang isyung pang-ekonomiya kundi banta rin sa kapayapaan at kaayusan," aniya.
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