The House of Representatives on Tuesday authorised on second studying House Bill 3917, which classifies the smuggling of tobacco, whether or not manufactured or unmanufactured, as large-scale smuggling or financial sabotage.
The measure, authorised through voice vote throughout Tuesday’s plenary session, amends the Anti-Agricultural Smuggling Act of 2016 in addition to Sections 2530 and 2531 of Republic Act No. 193 or the Tariff and Customs Code of the Philippines.
House Bill 3917 defines manufactured tobacco as any product that consists of unfastened tobacco that incorporates nicotine and is meant to be used in a cigarette, together with any product containing tobacco and supposed for smoking or heating or puffing, or oral or nasal use.
On the opposite hand, the measure defines unmanufactured tobacco as agricultural parts derived from the tobacco plant that are processed to be used within the manufacturing of cigarettes and different tobacco merchandise.
The measure carries a penalty of 30 to 40 years in jail and a tremendous of twice the honest worth and the mixture quantity of the taxes, duties and different fees by the smuggling of tobacco, whether or not manufactured or unmanufactured, together with completed merchandise corresponding to cigars, cigarettes or heated tobacco merchandise.
In addition, the invoice regards offenses for tobacco smuggling as non-bailable.
“Estimates of the national government’s foregone revenues due to the rampant proliferation of illegal cigarettes range from P30 to as much as P60 billion. Global think-tank Euromonitor estimates Philippine government revenue losses to reach P26.2 billion in 2022 and another P31 billion by 2023 because of this criminal activity,” the explanatory notice on the measure learn.
“Thus, there is an urgent need to combat large-scale tobacco smuggling by imposing more stringent penalties and deter the entry and sale of illegal tobacco in the Philippines. This bill seeks to include tobacco, both in its raw form or as finished products, as among the agricultural commodities the illegal importation of which can be classified as constituting economic sabotage,” it added.
The authors of the measure additionally argued that the continued proliferation of smuggled cigarettes is inconsistent with the federal government’s concern for public well being, provided that the present taxation and regulation solely covers the authorized tobacco trade however permits illicit cigarettes to run rampant.
“Aside from directing concerned agencies to strictly implement existing laws, legislators should also enact laws to plug loopholes to control illegal tobacco. If the entry and sale of smuggled cigarettes continues unrestricted, the national government stands to lose even more revenues,” the explanatory notice on the measure said.
“[As such,] this will be detrimental to its pandemic recovery efforts. Clearly, this is one of the biggest tax leaks that the government needs to plug. In view of the foregoing, the passage of the bill is earnestly sought,” it added.
The authors of the measure embody Representatives Wilfrido Enverga of Quezon, Ferdinand Alexander Marcos of Ilocos Norte, and Margarita Ignacia Nograles of the PBA party-list, amongst others. — DVM, GMA Integrated News
