Repercussions of the upcoming annual sin tax law cigarette price increases keep authorities busy as Philippine National Police operatives once again arrested two illicit cigarette traders in Barangay Cut-cot, Pulilan, Bulacan.
The suspects identified as Wilfredo Dimaano, 22, and Laarni Leslie Bautista, 21, were nabbed by police while in possession of more than 60 reams of counterfeit Mighty brand cigarette variants.
A Mighty Corp. representative certified the products to be counterfeit due to inconsistencies in the packaging.
Both suspects were charged with violating Section 155 (trademark infringement) in relation to Section 170 of Republic Act 8293, also known as the Intellectual Property Code of the Philippines under Case No. III-04-INV-16K-02327.
Bureau of Internal Revenue personnel noted that any violator caught in possession of any product proven to be fake would incur a penalty of two to five years imprisonment and a fine ranging from P50,000 to P200,000.
According to the World Health Organization (WHO), illicit cigarettes generally fall under three classifications:
– contraband, cigarettes smuggled from overseas without local duties paid;
– counterfeit, cigarettes manufactured without rightful owners’ authorization and with deceptive intentions as well as avoiding duties; and
– illicit whites, brands manufactured legitimately in one country but smuggled and sold to another while avoiding duties.
All undercut the government in due taxes and are subject to penalties as prescribed by existing laws.
Industry observers attributed the temptation of illicit cigarettes to retailers because of higher profit returns while deceiving non-discerning buyers as the products also alarmingly carry fake cigarette tax stamps.
Just last month, authorities arrested two fake cigarette vendors in Isabela for also selling fake cigarette to add to the string of arrests and seizures by the combined effort of the BIR, PNP, Bureau of Customs and National Bureau of Investigation over the past two years.