More adult smokers in the Philippines, along with smokers in three other countries, are becoming increasingly comfortable buying illegal cigarettes, according to a new study commissioned by JTI.
Citing the JTI study during the EJAP Midyear Economic Forum, JTI Philippines director for fiscal and regulatory affairs Robert Eugenio said while 50 percent of the smokers interviewed for the study felt that illicit tobacco trade is a threat to their country, 43 percent of them would be “comfortable buying cigarettes that they know to have been produced or sold illegally”.
About 33 percent of adult Filipino smokers covered by the study said they would be willing to patronize illegal cigarettes.
Eugenio said illicit trade in tobacco is a global problem that world governments should address before it becomes “normalized.”
The study entitled “Fighting the Dark Underworld” was participated in by adult smokers in France, the United Kingdom, Canada and the Philippines, which examines how geo-political environments, fragile economies and a lack of serious deterrents create the ideal conditions for a surge in criminal activity and increased profits for criminal networks.
Eugenio said validating the results of the JTI study is the fact that smuggled and non-tax paid cigarettes were being sold openly in stores and other public areas.
“In some areas in Mindanao, eight out of 10 cigarettes sold come from illegal sources,” he said.
Government revenues from the tobacco industry fell from a record high of P176 billion in 2021 to just P135 billion in 2023, which could be partly attributed to rampant tobacco smuggling, he said.
He lauded Congress for approving the Anti-Agricultural Economic Sabotage bill, which classifies tobacco smuggling as an act of economic sabotage, that can boost government’s campaign against tobacco illicit trade.
He also cited that the recent directive of President Ferdinand Marcos Jr. to all government agencies to intensify the fight against the illicit tobacco trade has already provided a strong impetus even before the bill is signed into law.
Aside from a consistent and intensified enforcement of the laws up to prosecution and conviction, he also cited tightened border controls and a re-examination of the country’s excise tax laws as other possible policy considerations.
