The Philippines government risks losing up to 13.3 billion pesos ($240 million) per year due to illicit trade in vaporized nicotine products, an official warns. This demonstrates the challenges combating the black market vaping industry.
Huge Sums Lost to Illegal Vape Sales
The 13.3 billion peso figure reflects potential tax revenue lost as illicit vape dealers evade regulation. This equates to 416 million milligrams of unlawful vape products consumed annually in the Philippines.
The numbers come from Department of Energy Undersecretary Sharon Garin, who notes both illegal vapes and cigarettes drain over 50 billion pesos from government coffers. She argues this jeopardizes funding national health insurance.
Difficulties Policing Vape Smuggling
Garin admits the Philippines is struggling to curb vape and tobacco smuggling and tax evasion. Porous borders allow smugglers to ship contraband on small vessels. Some local producers also avoid regulations.
“Illicit traders get more creative everyday,” Garin said. “Law enforcers can’t guard all ports” across the archipelago. She believes only cooperative action from government and citizens can stem illegal vaping.
Calls for Industry and Consumer Responsibility
Multinational tobacco company Philip Morris Fortune Tobacco has detected over half of Mindanao vape sales are illicit products. Regional smuggling complicates enforcement.
The company has invested heavily in alternative vaping products and urges the government to regulate quality and safety. All sides must collaboratively address the illicit market fueled by unmet consumer demand.
“If we make it more expensive, they go for the cheaper ones,” Garin noted, disputing that only taxation will curb smoking and vaping. With cooperation and sound policies, the Philippines can regulate vaping without forfeiting billions to the black market.
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