MANILA, Philippines — Sen. Sherwin Gatchalian is seeking a Senate probe into the possible revenue lost by the government due to the smuggling of illegal vapes and cigarettes into the country.
In a statement on Monday, December 2, Gatchalian said that he filed Senate Resolution 1243 in a bid to investigate how large of a cut the government was missing out on due to the smuggled goods,
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“Despite the efforts of various government agencies, illicit trade and smuggling of excisable products remain rampant across the country. And because of its far-reaching effect, it is imperative for the government to re-evaluate its approach in combating smuggling and illicit trade in the country,” Gatchalian said.
Citing data from the Department of Finance, Gatchalian said that the loss from cigarette and vape smuggling is at an estimated P52 billion per year.
Bureau of Internal Revenue Commissioner Romeo Lumagui Jr. has previously said that P60 billion in taxes were lost in 2023 due to vape and tobacco smuggling.
“Aside from reducing government revenues, they also undermine the rule of law, fuel corruption, impair the competitiveness of legitimate businesses while becoming a major source of income for organized crime groups, and taint the reputation of our country in the global scene,” Gatchalian said.
In May, President Ferdinand Marcos Jr. ordered a crackdown on tobacco and vape smuggling, tasking both the Bureau of Customs and BIR to beef up efforts against illegal traders.
The Department of Trade and Industry has suspended several famous vape brands for allegedly violating packaging standards.
Health advocates have raised concerns about how vaping, in particular, has appealed to underage children.