REVENUES from the country’s tobacco likely reached USD7.3 billion last year, Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. said.
“The Philippines, as one of Asia’s developing economies, is home to an active tobacco industry, whose revenues are projected to reach US$7.3 billion in 2024,” Lumagui said during the second day of the International Tobacco Agricultural Summit at the SEDA Vertis North in Diliman, Quezon City on Tuesday, January 28.
Lumagui said the local tobacco industry is expected to grow at an annual rate of 2.67 percent from 2024 to 2029.
He also cited the industry’s contribution to the economy, noting that in 2023 alone, taxes from tobacco products reached more than P134 billion.
Lumagui, however, said that the strong potential for revenues has prompted a growing number of unscrupulous groups and individuals to exploit the increasing demand for tobacco and tobacco-related products.
He assured the public that the BIR is ramping up efforts to combat the illicit trade of tobacco products.
He said the BIR’s operations not only focus on traditional tobacco products such as cigars and cigarettes but also vapes.
Lumagui disclosed that in March last year, BIR operatives, in collaboration with the PNP-CIDG Laguna Provincial Field Unit, raided a warehouse in San Pablo City, resulting in the arrest of two individuals and the confiscation of 102,900 bottles of Flava vape products, with total tax deficiency amounting to P75 million.
It also conducted a large-scale raid of three warehouse factories in Indang and Dasmariñas, both in Cavite, and recovered master cases of cigarettes, sacks of raw tobacco, and fake internal revenue stamps with tax liabilities amounting to P5.4 billion.
Another coordinated raid was conducted in several locations in Agusan del Sur and Surigao del Sur provinces, during which close to 350,000 packs of illicit cigarettes with a corresponding tax liability of at least P219 million were confiscated.
Lumagui said BIR operatives likewise simultaneously raided four large-scale manufacturers of illicit cigarettes in Clark, Pampanga last September with a total of more than P8 billion in tax liabilities initially computed following the discovery of illicit cigarettes and unregistered machines.
“I have no doubt that the illicit traders from all sectors of the economy will continue to indulge in their nefarious practices. The Bureau, however, stands ready to meet whatever challenge they may pose to us, for in the final analysis, it is the well-being and the future of our people that is at stake in the war against illicit trade,” Lumagui said. (PNA)
