President Ferdinand R. Marcos Jr. has issued an unequivocal directive to government agencies to fortify their efforts in protecting the integrity of the nation's tobacco industry. This command reflects the administration's unwavering commitment to combat illicit trade activities that jeopardize the livelihoods of millions of Filipinos and undermine crucial government revenues.
During the 6th Private Sector Advisory Council-Agriculture Sector Group (PSAC-ASG) meeting in Malacañang on Wednesday, May 8, President Marcos emphasized the need for heightened enforcement and anti-smuggling initiatives by the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR). Acknowledging the ongoing efforts, he stressed the importance of further strengthening these measures to curb the influx of smuggled tobacco and vape products into the market.
Policy Recommendations and Industry Protection
In strict adherence to the President's directive, the PSAC-ASG has outlined a series of non-negotiable policy imperatives aimed at fortifying the defense of the tobacco industry. These directives include the expedited release of funds for the National Tobacco Authority's Sustainable Tobacco Enhancement Program, uncompromising amendments to existing anti-smuggling laws to encompass tobacco products, and the rigorous enforcement of regulations governing the importation and taxation of vapor products.
Furthermore, the advisory body has mandated the unyielding enforcement of laws against smugglers and retailers of illicit tobacco and vape products, with a strict protocol for reporting operations involving these items to the Office of the President on a monthly basis.
Socioeconomic Impact and Government Revenue
Recognizing the indispensable role of the tobacco industry in the Philippine economy, President Marcos has issued a resolute decree to ensure the protection of this vital sector. With 2.2 million Filipinos reliant on its livelihood, and tobacco excise tax contributing a substantial 4 percent of total government revenues, amounting to P135 billion in 2023, the President has underscored the non-negotiable allocation of 50 percent of tobacco excise tax revenue for Universal Health Care initiatives under the Department of Health and PhilHealth, as well as the Health Facilities Enhancement Program.
