ILLICIT TRADE OF TOBACCO IN THE PHILIPPINES The illicit trade of tobacco products continues to be a significant challenge in the Philippines. [...] THE PHILIPPINE TOBACCO INDUSTRY According to the Food and Agriculture Organization of the United Nations (FAO), the Philippines was the 16th largest producer of unmanufactured tobacco worldwide in 2022, with a total production of 47,730.39 metric tons (MT). [...] Page | 2 TOBACCO TAXATION IN THE PHILIPPINES The cost of cigarettes has significantly increased in recent years due to a series of tax hikes in the tobacco industry, starting in 2013. [...] Page | 3 TOBACCO TAXATION IN THE PHILIPPINES According to the 2023 Sin Tax Annual Report of the Department of Health (DOH), 58% of the excise tax collections for 2021 applied in the 2023 General Appropriations Act were derived from tobacco, amounting to PHP 174.13 billion. [...] These include a lack of coordination among government agencies (34%), lack of personnel to monitor and arrest smugglers (31%), lack of transparency and accountability of government agencies (20%), and the ability of smugglers to circumvent government policies in the import and sale of cigarettes (13%).
Authors
- Pages
- 15
- Published in
- Philippines
Table of Contents
- ILLICIT TRADE OF ILLICIT TRADE OF TOBACCO IN THE TOBACCO IN THE 1
- PHILIPPINES PHILIPPINES 1
- Founded upon the collective track record and 2
- THE PHILIPPINE TOBACCO INDUSTRY 3
- TOBACCO TAXATION IN THE PHILIPPINES 5
- The cost of cigarettes has significantly increased in recent years due to a series of tax hikes in the tobacco industry starting in 2013. 5
- TOBACCO TAXATION IN THE PHILIPPINES 6
- 50 will be allocated and used exclusively for the health sector 7
- 5 of the excise tax revenue not exceeding PHP 4 billion will be allocated to provinces producing burley and native tobacco 7
- 15 will be allocated for provinces producing Virginia tobacco but not exceeding PHP 17 billion 7
- TOBACCO TAXATION IN THE PHILIPPINES 7
- Based on data from the BIR excise tax revenues from tobacco products peaked at PHP 176.46 billion in 2021 but have been declining since then. 8
- TOBACCO TAXATION IN THE PHILIPPINES 8
- As the retail prices of legal tobacco increase due to higher taxes cheaper illicit products become more appealing. 9
- TOBACCO TAXATION IN THE PHILIPPINES 9
- INCIDENCE of illicit tobacco in the philippines 9
- Illicit manufacturing 9
- Counterfeit production 9
- Smuggling 9
- Bootlegging 9
- Incidence of Illicit Tobacco Trade in the PhilippineS 11
- The illicit trade of tobacco adversely affects government revenue public health national security and the livelihoods of Filipino tobacco farmers. 12
- IMPACT of illicit tobacco trade 12
- 1. The continued decrease observed in excise taxes collected from the legal sale of tobacco translates to less funds for programs supported by sin tax revenues. 12
- 4. Increased smuggling disrupts legitimate supply chains leading to negative impacts on the livelihood of Filipino tobacco farmers. 5. Criminality and corruption may rise in local communities. 13
- IMPACT of illicit tobacco trade 13
- Conclusion and Recommendations 14
- Conclusion and Recommendations 15
