MANILA, (PIA) — Senator Win Gatchalian has filed a resolution aimed at investigating the significant revenue losses attributed to the smuggling of excisable products, including vapes and cigarettes.
In his proposed Senate Resolution 1243, Gatchalian highlighted the ongoing challenges posed by illicit trade. “Despite the efforts of various government agencies, smuggling of excisable products remains rampant across the country,” he said. “It is imperative for the government to re-evaluate its approach in combating these issues.”
The Department of Finance (DOF) estimates that the government is losing approximately P52 billion annually due to the smuggling of vape and tobacco products. Of this amount, P35 billion is linked to tobacco smuggling, while P17 million is attributed to vapes.
Recent actions by law enforcement underscore the scale of the problem. In early November, the Philippine National Police Criminal Investigation and Detention Group (PNP-CIDG) seized P2.4 billion worth of counterfeit cigarettes and smuggled equipment. Additionally, the Bureau of Customs (BOC) confiscated P6.5 billion in smuggled vape products between October 2023 and August 2024.
Concerns over smuggling extend beyond local incidents. In September, Hong Kong Customs authorities intercepted USD 18 million worth of smuggled wine destined for the Philippines. Moreover, during the Philippine Vape Festival Compliance Summit in August, the Bureau of Internal Revenue (BIR) confiscated over 5,000 illicit vape products, despite the event being intended for discussions on regulation and policy.
The BIR also reported the seizure of 390,000 liters of ethyl alcohol in July, with unpaid excise taxes exceeding P700 million.
Gatchalian emphasized the broader implications of smuggling, stating, “These are not victimless crimes. They reduce government revenues, undermine the rule of law, fuel corruption, and impair the competitiveness of legitimate businesses. Furthermore, they serve as a significant source of income for organized crime and tarnish our country’s reputation on the global stage.”
In closing, he urged for decisive action against the smuggling of excisable products, which he believes undermines government revenue that could support essential projects for the nation’s underprivileged. “Kailangan nang matuldukan ang smuggling ng mga excisable products na dapat sana’y pinagkakakitaan ng gobyerno dahil malaking kabawasan ito sa pondo na dapat ay nakalaan sa mga proyekto na makakatulong sa ating mga mahihirap na kababayan,” he concluded. (The smuggling of excisable products that should have been making money for the government must be stopped because it is a big reduction in funds that should be allocated to projects that will help our poor countrymen.) (JCO/PIA-NCR)
