THE House ways and means committee on Tuesday approved an unnumbered substitute bill that calls for enhanced tracking of the flow of tobacco products through the supply chain.
Under the measure, tobacco companies will be required to implement a digital tracking system on cigarette products as a deterrent to the illicit tobacco trade, of which the National Government estimates foregone revenue of around P220 billion in the past four years, Albay Rep. Jose Ma. Clemente S. Salceda said.
Cigarette packs, electronic vapes, and related products would be affixed with a stamp, allowing authorities to determine where and when the product was manufactured.
“We would see where (the cigarette) came from because the tracking system allows us to trace it,” Mr. Salceda, who heads the House ways and means committee, told reporters. “We will see who brought it here and who sold it, all because of the tracking system.”
The illicit tobacco trade not only harms tax collection but also adversely affects public health, according to House Bill No. 10329, which was the basis of the recently approved unnumbered bill.
The Sin Tax Reform Act of 2012 stipulates that at least 80% of the law’s revenue should be allocated to the universal healthcare program under the Philippine Health Insurance Corp.
All tobacco manufacturers and importers are required to register their products, including “cigars, cigarettes, heated tobacco products, vapor products, and novel tobacco products,” according to the unnumbered substitute bill.
It also requires tobacco manufacturers to register equipment needed in making cigarettes and electronic vapes.
“All equipment, machinery, and components used in the manufacture, packaging, or printing of packaging of covered products shall be registered with the BIR (Bureau of Internal Revenue) within 30 days from its acquisition… registration shall be updated annually,” it added.
Access to tobacco products in online marketplaces would also be restricted under the measure, Mr. Salceda said.
“By default, selling tobacco, vape, and other nicotine products will not be allowed online, in line with Republic Act (RA) No. 9211 which prohibits advertising tobacco in mass media, including the internet,” he said in a statement. “Only those who are in a list of registered brands issued by the BIR and DTI (Department of Trade and Industry) will be allowed access to the online marketplace.” — Kenneth Christiane L. Basilio
