Salceda: Tobacco products cannot be sold online under anti-illicit trade bill

July 23rd, 2024

House Ways and Means Chair Joey Sarte Salceda (Albay, 2nd district) says that the House tax panel wants to fight illicit trade in tobacco products by banning the sale of tobacco products online. Only those that are registered with the DTI and BIR, after the agencies publish such a list, will be allowed access to digital marketplaces.

“By default, selling tobacco, vape, and other nicotine products will not be allowed online, in line with Republic Act No. 9211 which prohibits advertising tobacco in mass media, including the internet.”

“Only those who are in a list of registered brands issued by the BIR and DTI will be allowed access to the online marketplace,” Salceda added.

This was after the House tax committee approved its committee report to House Bill No. 10329, Salceda’s bill on illicit trade, today. The Committee Report was drafted by a technical working group chaired by Rep. Stella Quimbo.

Salceda says “we have already lost P221 billion in revenues over the past four years as a result of illicit trade in tobacco products. We have to stop the hemorrhaging.”

Apart from the proposed ban on online sale of tobacco and other nicotine products, the bill also includes the following features

1. The Mandatory use of the Tracking and Tracing System requiring the use of secure digital markers through unique identifier features on tobacco products;
2. Mandatory registration of manufacturing equipment for tobacco products within thirty (30) days from acquisition or disposal;
3. Enumerating the responsibilities of digital platforms in ensuring the absence of illicit covered products in their respective platforms;
4. Rationalization of prohibited acts falling under the crime of Illicit Trade of Covered Products by excluding from the enumeration those covered by the National Internal Revenue Code, as amended, Customs Modernization and Tariff Act, and other special laws;
5. Granting the BIR, through the National Telecommunications Commission, the power to remove illicit product listings on digital platforms;
6. Outlining the procedure for custody and disposition of confiscated, seized, or surrendered covered products to establish proper chain of custody.

Salceda says that he expects the House Committee on Appropriations to approve the appropriations provisions of the measure this August, so that the bill can be approved by the House before the filing of certificates of candidacy in October.