Gov’t loses ₱40B in tobacco taxes to illicit trading

With losses from illicit trade reaching nearly $2 billion annually, the local tobacco industry is calling for the creation of a composite strike force to ensure the imprisonment of offenders and deter the continued rise in illicit activity.

- By DERCO ROSAL

On the sidelines of a Financial Times event which focused on combating illicit trade in Southeast Asia, Philippine Tobacco Institute (PTI) President Jericho Nograles revealed that the ₱160 billion the government collects in tobacco excise taxes represents only 80 percent of the potential total revenues.

This means that 20 percent—or at least P40 billion—of potential revenue was lost to illicit trade.

Australian-based Rohan Pike Consulting has calculated losses to be higher, at $1.9 dollars, or around ₱116 billion on a yearly basis.