According to The Inquirer on January 10th, the Philippine Bureau of Internal Revenue (BIR) has confirmed that there has been a decrease in consumption tax revenue from 2021 to 2024, resulting in a tax revenue loss of up to 400 billion pesos (approximately 7 billion US dollars) during this period.
The Bureau of Internal Revenue (BIR) revealed during a hearing at the Senate Committee on Ways and Means that tax revenue is projected to decrease from 174 billion pesos (3 billion USD) in 2021 to 134 billion pesos (2.3 billion USD) in 2024. Senator Sherwin Gatchalian, who chairs the committee, highlighted the committee's focus on illegal trade of tobacco products, heated tobacco products, e-cigarettes, cigars, and cigarettes. He also mentioned that the projected loss in e-cigarette tax revenue in 2024 is 64 million pesos (1.1 million USD).
The head of the Bureau of Internal Revenue's Large Taxpayers Service Office, Dondanon Galera, stated that the decrease in consumption tax revenue is due to changes in the smoking habits of consumers, shifting from traditional cigarettes to e-cigarettes and illegal trade. He added that the BIR has started enforcing actions against illegal cigarettes and e-cigarettes, with 141 enforcement actions taken against illegal e-cigarettes in 2024 alone.
Jericho Nograles, Chairman of the Philippine Tobacco Institute (PTI), stated that the government has lost 520 billion pesos (9 billion USD) in tax revenue due to the smuggling of e-cigarettes and tobacco products. PTI recommends addressing the issue of illegal tobacco trade comprehensively to avoid harming the interests of tobacco farmers and tax revenue.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
