Senator Sherwin Gatchalian highlighted the rising illicit cigarette trade as a “lose-lose situation” during a Senate Ways and Means Committee hearing, citing reduced government revenues and increased smoking prevalence.
Adult smoking prevalence jumped from 19% in 2021 to 24.4% in 2023, while tobacco excise tax collections fell from ₱176 billion in 2021 to ₱130 billion in 2024.
Gatchalian urged the Department of Finance (DOF) to address the problem through stronger enforcement and solutions like a track-and-trace system.
Industry leaders supported a moratorium on excise tax hikes and called for stricter law enforcement to combat smuggling.
Gatchalian warned the country could lose ₱70 billion in taxes over the next three years without decisive action.
Source: PhilNews24 | January 10, 2025
