Tougher penalties sought for cigarette smuggling

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The Philippine Star

February 2, 2026 | 12:00am

MANILA, Philippines — Stiffer penalties await illegal importers and smugglers of cigarettes as a bill filed in Congress seeks to amend key provisions of the National Internal Revenue Code and the Customs Modernization and Tariff Act.

House Bill 6965, or the proposed Anti-Illicit Cigarette Import Trade and Smuggling Act, would strengthen enforcement against illicit cigarette trade, protect government revenues, ensure fair competition, and promote public health, its author, 1Tahanan party-list Rep. Nathaniel Oducado, said.

Under the proposed measure, individuals found importing, manufacturing, selling, transporting, storing, or possessing cigarettes without full payment of excise taxes or without the required tax stamps shall be held criminally liable, regardless of whether the cigarettes are locally produced or imported.

HB 6965 further provides that the possession of cigarettes without the prescribed excise tax stamps shall constitute prima facie evidence of a violation, placing the burden of proving lawful payment of excise taxes on the person in possession.

The measure also introduces enhanced and deterrent penalties, particularly for organized and large-scale smuggling operations.

Oducado stressed that illegal cigarette smuggling not only deprives the government of much-needed revenues but also undermines legitimate businesses and poses serious public health risks.

“This bill sends a strong message that smuggling and tax evasion will not be tolerated. We must protect honest taxpayers, legitimate manufacturers, and the public,” Oducado said.