A proposed bill, which seeks to address the “undeniable harm” the illicit cigarette trade brings to the Philippine economy and public health, wins more support from legislators who are now calling for the swift deliberations of the measure in the House of Representatives Ways and Means Committee.
“We need to expedite the passage of HB 11279 to curb illicit trade and recover government revenues,” said House Committee on Dangerous Drugs chair Robert Ace Barbers.
“The proceeds of illicit trade have been shown to fund terrorism and organized crime. Smuggled cigarettes equate to big money and it’s an attractive fundraiser for notorious actors. Congress should act now and we don’t have the luxury of time,” said Barbers, the representative of Surigao del Norte Second District.
HB 11279 gained more support despite the efforts of certain groups to spread misinformation about the measure.
Deputy Speaker and Ilocos Sur 2nd District Rep. Kristine Singson-Meehan said “that certain groups are spreading misleading information to undermine the intent of the bill, which is to stop the spread of illicit trade and boost revenue collections.”
Meehan, a co-author of the bill, said lawmakers are in fact looking forward to upcoming discussions on HB 11279 in the House Ways and Means Committee.
“The stakes are high, and every delay in advancing this bill allows illicit traders to continue exploiting loopholes and depriving our nation of much-needed revenue,” Meehan said.
Ilocos Norte 2nd District Rep. Angelo Marcos Barba, a co-author of the bill, said, “this measure would bring them (illicit traders) to their knees because it will cut off their avenues for smuggling. The government is closing in, and their grip on the market is slipping.”
Other co-sponsors of the bill include Deputy Speaker and Rep. Antonio Albano (Isabela, 1st District), Rep. Ron Salo (Kabayan Party-list), Rep. Solomon Chungalao (Ifugao, Lone District) and Rep. Margarita Nograles-Almario (PBA Party-list).
Referring to the rise in illicit cigarette trade prevalence, Barbers said it “needs to be addressed now to prevent further losses in government revenue. Excise tax funds are meant to benefit the people, not to line the pockets of illicit traders. We cannot and will not allow this evil activity to continue.”
According to Bureau of Internal Revenue data, tobacco excise tax collections declined yearly from P176 billion in 2021 to P160 billion in 2022 and P135 billion in 2023. Meanwhile, the Food and Nutrition Research Institute said adult smoking prevalence rose from 19 percent in 2021 to 24.4 percent in 2023.
Barbers said House Bill 11279 aims to tackle this problem directly. He said, “A thorough review in Congress ensures we have a potent law to address and hopefully put an end to this criminal activity.”
Barbers also noted that illicit cigarette trade has been steadily increasing since 2021, “causing undeniable harm to the economy, public health, and society. It has also now evolved as a source of funds for terrorism linked to various criminal activities.”
Experts previously warned that illicit cigarette trade’s link to terrorism may lead to a potential national security crisis.
Prof. Rohan Gunaratna, a top regional security expert, said during a security conference in Manila in June 2024 that terrorist groups including the Abu Sayyaf and rebel groups were among the beneficiaries of illicit trade.
He also revealed that smugglers used Palawan, Zamboanga, Sulu and Tawi-Tawi as entry points for illicit cigarettes from Indonesia and Malaysia.
Bureau of Customs Deputy Commissioner Juvymax Uy, during a Senate Ways and Means Committee hearing, pointed out that the Philippines’ porous borders, particularly in the southern region of Mindanao, facilitate smuggling. He confirmed that illicit cigarettes are frequently found in Abu Sayyaf camps, suggesting links between smuggling and terrorism.
