POLICE nationwide have been ordered to step-up their campaign against the smuggling and distribution of fake cigarettes which undermines the effort of the government to control tobacco consumption through proper taxation and regulation.

“I have directed all concerned police units to intensify the crackdown against fake and smuggled cigarettes. The PNP is committed to eradicating the illicit cigarette trade that not only undermines government revenues but also poses serious health risks to the public,” Philippine National Police (PNP) chief, General Rommel Francisco D. Marbil said.

“Our intensified efforts will include heightened surveillance, stricter border controls, and coordinated operations with other law enforcement agencies,” added the top cop as he cited an annual P25 billion government loss and the major risk it poses to public health.

The availability of counterfeit and smuggled cigarette products really undermines the government’s efforts to control tobacco consumption through taxation and regulation and in particular erodes the effectiveness of anti-smoking campaigns and initiatives aimed at reducing smoking rates.

While the government aims to promote a healthy environment by regulating and even banning all tobacco advertisements and sponsorships as well as the labeling of tobacco products, smuggling and sale of counterfeit cigar remains a problem.

Why? A package of Marlboro cigarettes now cost more than P150 compared to smuggled ones which cost less than P100.

Officials said that the illicit trading of cigarettes has become rampant in the country causing the government to lose billions in revenues that could have been allocated for its priority programs, particularly the provision of health facilities and services.

Problems facing authorities include not only the smuggling of cigarettes from different countries, including China, but also the syndicates’ use of fake tax stamps with the government previously detecting the presence of clandestine factories producing fake famous brands of cigarettes.

Thus, there have been calls for the Bureau of Customs and its allied law enforcement agencies including the PNP to really go hard against illegal cigarette-making machines including filterand packaging makers being used by manufacturers and smugglers of fake tobacco products in the country.

During the previous Duterte administration, the Department of Finance said there was an increase in illegal cigarettes in the aftermath of their actions against Mighty Cigarettes, a big cigarette factory accused of using fake tax stamps.

The company allegedly offered to pay the Duterte government P25 billion by selling its assets to Japan Tobacco, the world’s 3rd biggest tobacco company for P45 billion.

The downfall of the known tobacco company triggered a huge vacuum in the local market however prompting small manufacturers to fill the void and take advantage.

Gen. Marbil issued his instruction to all 17 police regional offices and the PNP Criminal Investigation and Detection Group amid reports that national government is losing a staggering P25.5 billion every year due to the illicit trade of fake and smuggled cigarettes.

According to a Bureau of Internal Revenue report, the spread of counterfeit and smuggled cigarettes contributed to a 15.9 percent decline in revenue in 2023, amounting to a P25.5 billion decrease from the previous year.

From January to April this year alone, the BIR reported losses totaling P6.6 billion.

The BIR has recommended implementation of more stringent measures to combat cigarette smuggling, such as tighter border controls and enhanced tax compliance enforcement.

So far this month, Gen. Marbil has reported a series of successful operations resulting in the arrest of individuals involved in cigarette smuggling in various regions and significant contraband seizures in Sultan Kudarat, Tawi-Tawi, and Zamboanga City, among others.

Recent operations in Mindanao have led to the recovery of illegal cigarettes valued at approximately P10 million.