Deputy Speaker Kristine Singson-Meehan of the 2nd District of Ilocos Sur

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Lawmakers have raised concerns over what they claim were deliberate attempts to mislead the public by undermining the intent of House Bill (HB) 11279, a measure aimed at curbing illicit trade and increasing government revenues.

“We are looking forward to the upcoming discussions on HB 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 authors.

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“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 added.

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Singson-Meehan further argued that the bill is a revenue measure intended to boost government resources for healthcare and other essential services.

Chemrez Technologies Inc. President Dean Lao Jr. told reporters on Monday that their biodiesel plant was able to produce 90 million liters of supply per year.

“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.

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Ilocos Norte 2nd District Rep. Angelo Marcos Barba, one of the bill’s co-authors, echoed these sentiments, noting that illicit traders are becoming increasingly desperate as the government closes in on the illegal market.

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“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.

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He pointed to the recent passage of Republic Act (RA) 12022, or the Anti-Agricultural Economic Sabotage Act, as a turning point in the fight against illicit trade.

“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 stated.

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Other sponsors 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.

HB 11279’s proponents argue that the persistent rise in illicit trade is largely driven by high excise taxes on tobacco products, which have made counterfeit and smuggled goods more attractive to consumers.

“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 decline 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,” House Bill 11279 noted.

In the bill’s exploratory note, the authors acknowledge that while higher taxes on tobacco products are intended to curb smoking, they have also contributed to the proliferation of illicit and counterfeit 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 noted.

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Citing industry datatamabet, the bill notes that the volume of illicit trade has surged, rising from 5.3 percent in 2020 to 13.2 percent in 2023. The number of consumers purchasing illicit cigarettes has also grown, reaching an average of 13.9 percent last year.

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