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Tuesday, February 18, 2025

Anti-illicit trade bill gains more support in Congress

More lawmakers expressed their support for the passage of House Bill No. 11279 which aims to stop the worsening illicit trade problem causing billions in revenue loss and “undeniable harm” to the economy and public health.

House Committee on Dangerous Drugs chair Robert Ace Barbers underscored the need to expedite the approval of HB 11279 to curb illicit trade and recover government revenues.

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“We know that illicit trade threatens peace and order. 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, who is the Surigao del Norte Second District representative.

Deputy Speaker Kristine Singson-Meehan of the 2nd District of Ilocos Sur, a co-author of the bill, said they are looking forward to the 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,” said Meehan.

Ilocos Norte 2nd District Rep. Angelo Marcos Barba, a co-author of the bill said, the proposed measure would bring 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,” said Barba.

Other co-sponsors of the bill are Deputy Speaker and Isabela 1st District Rep. Antonio Albano, Kabayan Party-list Rep. Ron Salo, Ifugao Lone District Rep. Solomon Chungalao and PBA Party-list Rep. Margarita Nograles-Almario.

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.”

Data from the Bureau of Internal Revenue show that tobacco excise tax collections suffered a yearly decline 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 precisely 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 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 national security crisis.

Regional security expert Prof. Rohan Gunaratna said during his presentation at 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 (BOC) deputy commissioner Juvymax Uy pointed out during a Senate Ways and Means Committee hearing 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.

Meehan warned, however, “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.”

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