Senator Win Gatchalian has introduced a series of resolutions aimed at curbing the illicit trade of cigarettes and vapor products, addressing both the government’s revenue loss and the associated health risks.
Among his key proposals is involving local government units (LGUs) in a more active role in tackling the illegal trade. “LGUs are on the front lines—they know their communities best and should be empowered to help combat the illicit trade of excisable products,” Gatchalian said.
The senator also called for the introduction of specific penalties targeting manufacturers, distributors, and retailers involved in the unlawful possession or removal of tobacco and vapor products from production sites. He emphasized that retailers should also be held accountable. “If we’re acknowledging that these illicit products harm public health, then retailers must bear responsibility as well,” he noted.
Further, Gatchalian recommended mobilizing the Anti-Money Laundering Council (AMLC) to track financial transactions linked to illicit trade, which, he said, could also be funding criminal activities, including terrorism. “We need the AMLC to identify those behind these illegal transactions,” Gatchalian added.
During a recent Senate Committee on Ways and Means hearing on the growing issue of illicit trade, the senator presented several recommendations for government action, many of which involve policy changes that do not require new legislation. He urged the Department of Finance to consider these proposals.
Other resolutions Gatchalian proposed include imposing a uniform tax rate on all vapor products, applying an ad valorem tax on vaping devices, using track and trace technology, enhancing intercountry cooperation, convening the Anti-Agricultural Economic Sabotage Council, stepping up efforts to go after retailers, tightening regulations on e-marketplaces, and improving prosecution and conviction rates for offenders.
