MANILA, Philippines — Cigarette manufacturer Japan Tobacco International (JTI) Philippines Inc. yesterday warned that further increasing the excise taxes on tobacco products could worsen the incidence of cigarette smuggling in the country. In a statement, JTI president and general manager Manos Koukourakis said higher tobacco sin taxes, as proposed by the Department of Finance (DOF) and Department of Health (DOH), may negatively affect tobacco farmers, cigarette retailers, suppliers and employees, and others who benefit from the tobacco industry. He said higher taxes would benefit smugglers and encourage more to illicitly trade cigarette products in the country. The smugglers, though, will benefit because the higher the tax, the higher the benefit due to tax avoidance,” he said. Koukourakis cited the situation in other countries which raised tobacco taxes steeply, saying these countries are now suffering the effects of cigarette smuggling.

Source: Philippine Star May 21, 2019 21:56 UTC