Philippine House Committee Approves Bill Banning Online Tobacco Sales

According to a report by Business Mirror on July 24, the Philippine House Committee on Ways and Means has approved an unnumbered substitute bill aimed at banning the online sale of tobacco products to combat their illegal trade.

During the approval of the bill, committee chairman Joey Sarte Salceda stated that only products registered with the Department of Trade and Industry (DTI) and the Bureau of Internal Revenue (BIR) can be sold in the digital market, and this can only happen after these agencies have released the corresponding lists.

By default, under Republic Act (RA) 9211, it is prohibited to advertise tobacco on mass media such as the internet. By default, online sales of tobacco, e-cigarettes, and other nicotine products are not allowed.

He added, "Only brands listed in the registered brand list by the BIR and DTI are allowed to enter the online market.

Previously, the House Ways and Means Committee approved its report on House Bill 10329, which is Salceda's bill regarding illegal trade.

Over the past four years, we have lost 221 billion pesos in revenue due to the illegal trade of tobacco products. We must stop this loss.

In addition to prohibiting the online sale of tobacco and other nicotine products, the bill also includes several key provisions aimed at combating illegal trade.

These features include the requirement to utilize a tracking and tracing system, which mandates the use of secure digital markings with unique identifiers on tobacco products, as well as the mandatory registration within 30 days of acquiring or handling tobacco manufacturing equipment.

The bill also outlines the responsibility of digital platforms to ensure that there are no illegal products on their platform.

The bill excludes behaviors covered by the revised National Domestic Tax Code, the Customs Modernization and Tariff Act, and other specific laws in order to rationalize prohibited actions falling under the crime of illegal trade in covered products.

The bill grants the Bureau of Internet Regulation the authority to remove a list of illegal products on digital platforms through the National Telecommunications Commission.

The bill also outlines procedures for regulating and handling confiscated, impounded, or surrendered products to establish a proper oversight chain.

It is expected that the House Appropriations Committee will approve the financial provisions needed for the measure in August of this year, so that the bill can be approved by the House before the October candidate qualification application period.