To help curb the selling of smuggled and illicit cigarettes in many parts of the country, the National Tobacco Administration will step up its information drive against illicit trade of tobacco products.
NTA, as the country’s sole regulatory agency on tobacco, will adopt initiatives that are outside its administrative and regulatory powers to help the National Government in the campaign against untaxed brands and provide information on the existing policies and programs against illegal tobacco trade.
These initiatives, according to NTA Administrator/CEO Robert Victor G. Seares Jr., are in support of the coordinated efforts of the Bureau of Internal Revenue, Bureau of Customs, the Philippine National Police, and the National Bureau of Investigation, in going after those involved in illegal trading.
“We will produce and distribute Anti-Illegal Trade (AIT) posters to the communities in tobacco-growing provinces, in coordination with the provincial branch offices and the local government units in their coverage areas,” Administrator Seares said.
A video campaign on the effects of the illegal trade on the tobacco industry will also be released through NTA’s online assets.
“Also in the coming months, we will conduct webinars with resource persons from various government agencies to help us explain the ill effects of illegal tobacco trade,” he added.
The illicit trade has been affecting tax collections in the industry, thereby hampering the economic gains from the tobacco industry.
Based on estimates by the House committee on ways and means last year, the government is losing about P30 billion to P60 billion a year from illicit trade in cigarettes.
“Had these billions of pesos been collected, our LGUs would have received more shares from the tax collections for their development program to benefit our farmers and their communities, and more funds for the national health insurance program,” he said.
LGUs in areas that grow tobacco received a total of P46.1 billion from the DBM as their share in the excise taxes collected from the sale of cigarettes and tobacco in 2018 and 2019.In 2020, the government collected P148.45 billion in excise taxes from the tobacco industry alone, and part of the tax collections are used to fund the Universal Health Care program of the government.