According to the local branch of Japan Tobacco in the Philippines, a proposed law to classify cigarette smuggling as a crime will combat this illegal activity and assist in compensating for the government's annual loss of hundreds of billions of pesos in revenue.
The company is supporting House Bill 3917, which was proposed by Senior Deputy Majority Leader and North Iloilo Representative Sandro Marcos, and PBA party-list Representative Margarita Ignacia Nograles. The bill seeks to classify cigarette smuggling as an act of economic sabotage and impose harsher penalties, including removing the possibility of bail for those involved in illegal trading.
The measure has passed its first reading in the House of Representatives and has been referred to the House Agricultural Committee. It stipulates that convicted cigarette smugglers will be imprisoned for a minimum of 30 years but not more than 40 years.
In addition, those who violate the rule will be subject to a fine worth double the value of the confiscated contraband, plus any outstanding customs and other taxes.
This bill aims to include tobacco, whether raw or processed, in the list of agricultural products that are considered nauseatingly illegal under the Anti-Agricultural Smuggling Act of 2016.
As a result, illegal tobacco trafficking will be considered an economic sabotage activity, along with the smuggling of rice, sugar, corn, pork, poultry, garlic, onions, carrots, fish, and cruciferous vegetables.
John Freyda, the general manager of Miyan International's Philippines branch, stated in a release that "we believe this bill is a necessary step in considering these crimes as acts of economic sabotage, as it robs the national treasury at a time when it is already struggling due to the prolonged pandemic.
Widespread impact.
According to Freda, JTI Philippines has previously called for stricter sanctions against cigarette smuggling. Despite restrictions caused by the COVID-19 pandemic and increased law enforcement efforts, cigarette smuggling has become more rampant.
According to the explanatory statement of the bill he cited, cigarette smuggling causes the government to lose an estimated 30 to 60 billion pesos in revenue annually.
According to Marcos and Nograles, 60% of the sales in Zamboanga del Sur and Misamis Occidental, and 10% of sales in the Ilocos region are from smuggled goods.
According to Freda, cigarette smuggling is not a victimless crime as is commonly believed. It affects a wide range of industries, sectors, institutions, and livelihoods - from the entire agricultural sector, including tobacco farmers, retailers, consumers, and local government units that grow tobacco, all the way down to tax collection agencies.
He added that the profits from illegal tobacco sales often provide funds for larger criminal activities such as corruption, drug and arms trafficking, human trafficking, and terrorism.
R.J. Reynolds International Philippines has over 4,500 employees and is a distributor for multiple international brands including locally controversial Mighty and Marvels brands.
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