The rampant increase and open selling of smuggled cigarettes in many parts of Mindanao have prompted revenue, customs and police authorities to renew their drive against untaxed brands.
Authorities said the contrabands were detrimental to both consumers and the local economy as they were openly displayed and sold across thousands of stores in the provinces of Lanao del Sur, Lanao del Norte, Bukidnon, Iligan, Misamis Occidental, Zamboanga Peninsula and the Cotabato region.
Authorities said any person in possession or selling smuggled or fake cigarettes would be charged under existing laws.
Violators under the unfair competition law face a penalty of imprisonment from two to five years and a fine of P50,000 to P200,000.
Republic Act 7394, or the Consumer Protection Act, imposes a penalty of imprisonment from one year to five years, or a fine of P5,000.00 to P10,000.00, or both.
Violators of the National Internal Revenue Code, meanwhile, face a maximum penalty of imprisonment for 12 years and fine of P100,000.00.
Cigarettes smuggled into the country are subject to outright confiscation by local authorities.
Retailers, distributors and importers involved in the sales of smuggled or counterfeit cigarettes will also be held liable for tax violations and subject to criminal prosecution.
Authorities reminded retailers to purchase cigarette products only from legitimate sales personnel to ensure the products carry the mandated tax stamps.
Late last year, authorities seized and destroyed numerous caches, and prosecuted individuals engaged in the sale of these illicit products in various parts of Metro Manila, Bulacan, Cavite, Nueva Ecija and Cebu.
The public is advised not to buy the smuggled cigarettes sold cheaply in sari-sari stores and public markets at around P18 to P20 per pack since these are unregistered, thus, avoiding tax obligations to the government.
Due to the annual increase in excise tax, the cheapest mandated price per pack is currently at P25.
The smuggled and fake cigarette brands have been identified as Malboro, Winston, Mighty, Marvels, Far Star, Fort, American Legend, Union, Navy and Gudang Garam manufactured in China, Indonesia, Malaysia and Cambodia.