ILLICIT CIGARETTES. Japan Tobacco International-Philippines director for fiscal and regulatory affairs Robert Eugenio discusses illicit trade of cigarettes in the country at Ayuntamiento de Manila in Intramuros on Monday (July 8, 2024). He said the Philippine government needs to address the concern before it becomes a normal practice. (PNA photo by Kris M. Crismundo)
MANILA – The Japan Tobacco International (JTI), a global tobacco firm, has lauded the efforts of the Marcos administration in curbing illicit cigarette trade.
However, more has to be done, JTI Philippines director for fiscal and regulatory affairs Robert Eugenio said at an economic forum in Manila on Monday.
He said the company is looking forward to the Anti-Agricultural Economic Sabotage bill to become a law, which will impose severe penalties on the smuggling of agricultural products, including tobacco.
Eugenio recognized President Ferdinand R. Marcos Jr.’s directive to law enforcement agencies to intensify efforts to combat illicit cigarettes, or those sold in the market without paying the proper taxes.
“We are, therefore, optimistic that the government will continue on this path and ensure the strict enforcement of our existing laws towards the apprehension, prosecution and successful conviction of people behind this illegal activity,” he said during the private sector’s discussion at Economic Journalists Association of the Philippines-San Miguel Corp. forum at Ayuntamiento de Manila in Intramuros.
According to a study commissioned by JTI, 33 percent of adult Filipino smokers said they would be willing to buy illegal cigarettes.
“In some areas in Mindanao, eight out of 10 cigarettes sold come from illegal sources,” he said.
The Philippine government needs to address this concern before it is “normalized,” Eugenio said, noting that this significantly cuts tax collection.
He said tax collection from the tobacco industry significantly fell from a record high of PHP176 billion in 2021 to PHP135 billion last year, which can be partly attributed to rampant tobacco smuggling. (PNA)
