Philippine Finance Department: Tobacco and E-cigarette Smuggling Costs $900 Million Annually

Nov.08.2024

In May, Philippine Customs seized illegal tobacco and e-cigarettes worth approximately $14 million. The Department of Finance (DOF) Secretary responded, stating that smuggling of e-cigarettes costs the country up to $900 million annually and proposed changes to e-cigarette laws, including a unified tax rate.

According to GMA News on November 7, on May 12, the Bureau of Customs - Manila International Container Port (BOC-MICP) in the Philippines intercepted three shipments of illegal cigarettes and e-cigarette products from Singapore, with a total estimated value of 791 million pesos (approximately 14 million US dollars). The Department of Finance (DOF) stated on Thursday (7th) that the revenue lost each year due to cigarette and e-cigarette smuggling amounts to as much as 52 billion pesos (9 billion US dollars).

During the Senate inquiry on the 2025 budget, Finance Secretary Ralph Recto pointed out that tobacco smuggling leads to a loss of 35 billion pesos (6 billion US dollars), while e-cigarette smuggling results in a loss of around 17 billion pesos (3 billion US dollars).

According to Senator Grace Poe, the proponent of the budget proposal, importers of tobacco and e-cigarette products should first register with the Bureau of Internal Revenue (BIR) and obtain approval stamps before transporting them to the Philippines.

Apart from confiscating smuggled tobacco and e-cigarette products, Rick To pointed out that the Department of Finance is planning to propose a modification to the national e-cigarette law to eliminate distinctions in treatment of e-cigarette products and achieve a unified tax rate.

References:

[1] DOF: Gov't losing P52 billion from tobacco, vape smuggling annually

Also Read:

[1] Philippines Bureau of Internal Revenue to intensify crackdown on illegal e-cigarette products

[2] Philippines DTI: Unregulated E-cigarette Products Flood Market, Urges Legal Purchases

[3] Philippine Customs Seizes $120M Worth of Smuggled e-Cigarettes

[4] Massive Smuggling Bust by Philippine Customs Authorities in Manila

[5] DTI-FTEB and PNP-CIDG Joint Operation in Tondo District

[6] DTI Initiates Legal Action Against Four E-Cigarette Brands Including RELX, Flare

[7] New Guidelines for Handling Seized Goods by Philippines Tax Bureau

[8] DTI Suspends Sales of 5 E-cigarette Brands in Philippines, Including LOST MARY, Chillax, SHFTDr.Freeze, Aerogin, Don Bars, Black Elite

[9] Philippine Customs Seizes 200 Marijuana E-cigarettes at Clark Port

[10] Philippine Customs Seizes $33.8k Worth of E-Cigarettes in Warehouses

[11] Illegal e-cigarette products in Taytay market seized by authorities.

#Traditional tobacco #Legislation #Asia #Philippines

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