Senator Win Gatchalian urged the Bureau of Customs (BOC) to tighten the noose on smuggling of tobacco products to reduce revenue leakage in the country.

The chair of the Senate Committee on Ways and Means, Gatchalian made the statement following the recent confiscation by law enforcement agencies of over PHP5.5 billion worth of smuggled cigarettes in Iloilo City. The smuggled cigarettes, believed to have originated from Malaysia include brands like Mighty, Camel, Marvel, and Cannon Menthol.

“The government needs to tackle illegal trade of cigarettes and other tobacco products as this weakens the government’s revenue collection goal and undermines the profitability of those who are legitimately doing business,” Gatchalian said.

The senator further urged police authorities to get to the bottom of the case considering the volume of smuggled cigarettes involved and to investigate the involvement of a foreign national without proper documentation in perpetrating an illegal activity of such a scale.

Gatchalian earlier filed proposed Senate Resolution No. 566, which seeks to investigate the rising incidence of illegal trade involving excisable products, particularly tobacco, alcohol, and fuel products. The resolution aims to assess the scale of illicit trade in the country and adjust, if necessary, enforcement agencies’ priorities and border restrictions. 

As much as 42.8% of total cigarette consumption in the country comes from illicitly traded tobacco products, according to Gatchalian. In addition, potential tax losses from the illicit trade of tobacco products alone amounted to USD213.4 million in 2019, and the government loses around PHP1.4 billion in revenue due to smuggled vaping products.

“We must not allow our nation to be a playground for criminal activities particularly by foreign nationals who take advantage or abuse existing laws,” he added.