August 26, 2025 | 12:00am
MANILA, Philippines — The Philippine Tobacco Institute (PTI) has sounded the alarm over the proliferation of illicit tobacco merchandise, warning that these merchandise not solely endanger public well being but in addition drain billions from authorities coffers.
PTI president Jericho Nograles stated these illicit merchandise not solely endanger the well being of customers but in addition gas the underground financial system by evading taxes and flooding the market with unregulated cigarettes.
“The broad availability of low-cost, illicit tobacco will not be solely depriving the federal government of much-needed income, it is usually undermining public well being by making cigarettes extra accessible to the youth,” he stated.
In an announcement, PTI stated the price of illegally distributed cigarettes is priced decrease than these compliant with the tax businesses, making such merchandise accessible available in the market.
Nograles famous that the illicit tobacco commerce robs the federal government of greater than P40 billion in yearly excise taxes and weakens public well being efforts by placing cheaper cigarettes inside simpler attain of minors.
“These merchandise aren’t compliant with authorities rules or product high quality requirements, exposing grownup customers to harmful substances,” Nograles stated.
The PTI urged the general public to stay vigilant by avoiding cigarettes with out genuine BIR tax stamps or these offered under the authorized value ground, and reminded that minors are strictly prohibited from promoting, buying or smoking tobacco merchandise.
“Don’t smoke any cigarette that doesn’t bear an genuine and present BIR tax stamp and the required graphic well being warning. Some illicit merchandise have been discovered utilizing expired or outdated stamps,” PTI stated in its assertion.
“Merchandise offered under the BIR-mandated minimal value for cigarettes are very possible illicit and ought to be reported to authorities,” it added.
Japan Tobacco Worldwide Philippines company affairs and communications director Shaiful Mahpar stated the rise in taxes has pushed retail costs of tobacco up, whereas smuggled items promote less expensive.
Mahpar added that the numerous value hole pushes people who smoke unable to afford authorized cigarettes to buy cheaper unlawful ones, undermining efforts to scale back smoking, and fueling the expansion of the illicit market.
The Bureau of Inside Income just lately filed 75 tax evasion instances earlier than the Division of Justice towards vape retailers and sellers for evading fee of tax amounting to P711.3 million.
Earlier, Lumagui informed The STAR that the BIR is looking for a legislative reform to increase its authority in suspending or closing companies discovered violating excise tax legal guidelines.
