Philip Morris Fortune Tobacco Corp. (PMFTC) said intensified enforcement by the Bureau of Internal Revenue (BIR) and other government agencies has helped reduce illicit cigarette trade, potentially limiting tax leakages from untaxed tobacco products.
PMFTC recently presented to BIR Commissioner Charlito Martin Mendoza the results of its internal Pack Survey, which showed a decline in illicit cigarettes in the market.
The tobacco company attributed the improvement partly to increased field operations by the BIR, Bureau of Customs (BOC), Philippine Coast Guard (PCG), and Philippine National Police (PNP).
PMFTC and the BIR also discussed measures to further strengthen enforcement against illicit cigarettes and untaxed tobacco products, including tighter inspection procedures for imported and exported cigarettes.
The meeting forms part of the BIR’s efforts to work with industry stakeholders to protect government revenues and strengthen enforcement against the illicit tobacco trade.
Representing PMFTC were Corporate Affairs Director Chita Herce, Director for Affairs Noel De Luna, Illicit Trade Prevention Director Alain Baguisi, and Senior Manager for Illicit Trade Prevention Aldrick Rubin.
BIR officials at the meeting included Large Taxpayers Service Assistant Commissioner Edgar Tolentino, LTS-Excise Head Revenue Executive Assistant Dondanon Galera, and Erica Mabel Sarmiento of the Office of the Commissioner.
PMFTC said the latest Pack Survey results indicate that stepped-up enforcement may be gaining ground against illicit cigarettes, although the company did not disclose the magnitude of the decline or detailed survey findings.
The tobacco industry has been a major source of excise tax revenue for the government, making illicit products a concern not only for legitimate manufacturers but also for public coffers.
The BIR has been intensifying its campaign against illicit tobacco products as part of broader efforts to improve tax compliance and protect revenues.
For PMFTC, closer coordination between government and industry could help strengthen enforcement further, particularly against products that evade taxes and regulatory requirements.
The company said it remains committed to working with government agencies to address illicit trade and support measures that protect legitimate businesses and government revenues.
