Filipino legislators pushed back against “false narratives” on a proposed measure aimed at curbing illicit trade and shoring up government revenue collection.
“We are looking forward to the upcoming discussions on House Bill 11279 in the House Ways and Means Committee. However, it is concerning 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,” said Deputy Speaker and Ilocos Sur 2nd District Rep. Kristine Singson-Meehan, one of the bill’s principal authors.
Singson-Meehan raised concerns that the spread of misinformation was diverting attention from key issues.
“With these false narratives circulating, they are distracting from the critical conversations at hand. The committee is about to carefully review and study the various position papers to find a fair, objective, and balanced solution that can address pressing concerns related to health, illicit trade, tax collection, and the wellbeing of tobacco farmers,” she said.
Singson-Meehan explained that the bill is primarily a revenue measure designed to bolster government funding for essential public services, including healthcare.
“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,” she said.
Ilocos Norte 2nd District Rep. Angelo Marcos Barba, a co-author of the bill, said illicit traders are growing desperate as the government intensifies its crackdown against smuggled products.
“With the filing of HB 11279, they see the writing on the wall. This measure would bring them 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,” Barba said.
“Since the passage of RA 12022, or the Anti-Agricultural Economic Sabotage Act, these unscrupulous individuals have been scrambling. These laws are not just words on paper; they are powerful weapons to protect our economy, our farmers, and our people from exploitation and greed,” he said.
Other proponents of the bill include 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.
In the bill’s explanatory note, the authors acknowledged that while higher excise taxes on tobacco products are designed to reduce smoking rates, they have inadvertently contributed to a rise in illicit and counterfeit tobacco products.
“While it is in the country’s legitimate interest to impose higher taxes on sin products, the increase in the amount of excise taxes imposed on registered cigarette products unintentionally resulted in the proliferation of illicit and counterfeit products due to their low entry point and affordability,” the authors said.
Citing industry data, the bill underscores a sharp rise in illicit trade, with its market share growing from 5.3% in 2020 to 13.2% in 2023. Additionally, the number of consumers purchasing illicit cigarettes has increased, reaching an average of 13.9% last year.
The bill highlights how counterfeit and smuggled tobacco products are becoming more attractive to consumers, exacerbating the issue of illicit trade, largely driven by high excise taxes.
“Due to the prevalence of illicit tobacco products, the government’s excise tax collection has been declining since 2022. From a peak collection of PHP 176 billion in 2021, tobacco excise revenues declined to PHP 160 billion in 2022. In 2023, the Bureau of Internal Revenue (BIR) reported that the government has lost around 15.9% or PHP 25.5 billion in revenue due to illicit trade in cigarettes, ending collections in 2023 with PHP 135 billion,” HB 11279 said.
