Quezon City: Revenues from the country's tobacco industry likely reached USD7.3 billion last year, Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. announced on Tuesday. Lumagui made this statement during the International Tobacco Agricultural Summit held at SEDA Vertis North in Diliman.
According to Philippines News Agency, Lumagui highlighted the expected growth of the local tobacco industry, which is projected to expand at an annual rate of 2.67 percent from 2024 to 2029. He noted that taxes from tobacco products contributed more than PHP134 billion to the economy in 2023. However, the growing demand for tobacco has led to an increase in illicit trade, which poses a significant threat to the economy and society.
Lumagui explained that illicit trade undermines legitimate businesses and can be hazardous to public well-being. The proceeds from such trade are often used to fund organized crime and potentially local terrorist groups. In response, the BIR is intensifying efforts to combat the illegal trade of tobacco products, including cigars, cigarettes, and vapes.
The BIR has conducted several raids to address this issue. In March last year, a collaborative effort with the PNP-CIDG Laguna Provincial Field Unit led to the arrest of two individuals and the seizure of 102,900 bottles of Flava vape products in San Pablo City, with a tax deficiency of PHP75 million. Additional raids in Cavite, Manila, Rizal Province, Agusan del Sur, and Surigao del Sur have resulted in significant confiscations of illicit tobacco products and substantial tax liabilities.
In September, BIR operatives conducted simultaneous raids on four large-scale manufacturers of illicit cigarettes in Clark, Pampanga, uncovering tax liabilities exceeding PHP8 billion. Furthermore, during the Philippine Vape Festival of 2024, more than 5,000 illicit vape products lacking internal revenue stamps were confiscated.
Lumagui reaffirmed the BIR's commitment to tackling the challenges posed by illicit traders, emphasizing the importance of safeguarding the well-being and future of the people in the ongoing battle against illicit trade.
