According to a report by the Manila Times on November 2, the Philippine Tobacco Growers Association (PTGA) and the National Federation of Tobacco Farmers Associations and Cooperatives (Naftac) are urging the Senate to immediately pass Senate Bill 2432, also known as the "Anti-Agricultural Economic Destruction Act," in order to protect the tobacco industry and the thousands of tobacco farmers from rampant smuggling activities.
PTGA President Saturnino Distor expressed concern over the rampant smuggling activities of tobacco, which pose a threat to the livelihood of local farmers.
According to a recent study conducted by Asia Pacific University, Naftac Chairman Bernard Vicente revealed that 17% (or nearly one-fifth) of cigarettes sold in the Philippines come from illegal channels. As a result of this tobacco smuggling, the local tobacco demand has been continuously sluggish.
As a result, the agricultural sector is urging the Senate to pass this bill in order to curb cigarette smuggling, benefiting over 3 million Filipino farmers who depend on the tobacco industry.
Furthermore, the spokesperson of the Tobacco Farmers Association mentioned that if the proposed bill is passed, it will also be advantageous in boosting the government's revenue from cigarette taxes. This portion of tax revenue will provide funding for the Philippines Department of Health, enabling the provision of universal healthcare services to the public.
According to the information provided by the Philippines Agricultural and Livestock Association (Sinag), the Philippine government is estimated to lose at least 200 billion pesos (equivalent to 3.536 billion US dollars) in revenue each year due to smuggling. In addition, the consumption tax alone causes a loss of approximately 25 billion pesos (equivalent to 442 million US dollars) in revenue.
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