In observance of the Holy Week, the Philippine News Agency’s online news service will be off on March 29, Good Friday, and March 30, Black Saturday. Normal operations will resume on March 31, Easter Sunday.

— The Editors

Advocate vies for firm public-private sector drive vs. smuggling

By Joann Villanueva

December 13, 2022, 6:48 pm

<p><strong>ILLICIT TRADE.</strong> An anti-smuggling advocate is calling for a unified public-private sector position against smuglling, citing the illicit trade's impact on government revenues, employment, and the whole economy.  FIGHT Illicit Trade (FIGHT IT) Chair Dr. Jesus Arranza, in a briefing on Tuesday (Dec. 13), said the government losses around PHP250 billion worth of revenues annually because of smuggling. <em>(PNA file photo) </em></p>

ILLICIT TRADE. An anti-smuggling advocate is calling for a unified public-private sector position against smuglling, citing the illicit trade's impact on government revenues, employment, and the whole economy.  FIGHT Illicit Trade (FIGHT IT) Chair Dr. Jesus Arranza, in a briefing on Tuesday (Dec. 13), said the government losses around PHP250 billion worth of revenues annually because of smuggling. (PNA file photo) 

MANILA – Some PHP250 billion worth of state revenues is lost due to smuggling, thus, an advocate is calling on the private and the public sectors to have a common stand against the illicit trade.

In a briefing on Tuesday, businessman and FIGHT Illicit Trade (FIGHT IT) Chair Dr. Jesus Arranza said cigarette manufacturing accounts for the biggest share in tax leakage among the eight industries affected by smuggling, with an estimated PHP24.7 billion annually just for excise taxes.

He said illegal cigarette factories have been raided in Cavite and Pampanga while smuggled cigarettes have been observed to have come through Cebu, Palawan, Basilan, Tawi-Tawi, and Zamboanga.

The smuggled cigarettes are reported to have come from Cambodia, Vietnam, China, and Indonesia, he said.

Arranza said a reform has been made that increased the taxes on cigarettes and alcohol products but the government failed to collect properly because of the impact of smuggling, hindering the adequate financing of the Universal Healthcare Program.

“The increased tax made the smuggling of cigarettes an even more lucrative business. It may worsen the country’s problem on smuggling,” he said

The other industries that are affected by smuggling are textile, garment, coconut, sugar, and the manufacturing of tires, steel, and liquified petroleum gas (LPG) gas tank.

Citing a report from the Organization for Economic Cooperation and Development (OECD), Arranza said revenues from illicit trade globally amount to an estimated USD870 billion annually.

He noted that if the public and the private sectors remain divided on this issue domestic growth and jobs situation, among others, will continue to be greatly affected.

For one, he said the illicit trade of palm olein is hurting the local coconut oil production which is required to pay the 12 percent value-added tax (VAT).

He said importation of palm olein is VAT-free but only if the product will be used for animal feed production.

He, however, said that erring businessmen sell the imported olein as cooking oil or are used for the production of bio-diesel. (PNA) 

 

 

Comments