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.
We welcome news tips, article submissions, interview requests, or comments on this piece.
Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
Notice
1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.
2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.
3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.
4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.
Copyright
This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.
For copyright-related inquiries, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.
We welcome any corrections or feedback. Please contact us at: info@2firsts.com
