Lawmakers should be careful in considering the proposal to impose high taxes on tobacco products because such move could lead to unabated smuggling that could further increase youth smoking and fund organized crime, a Canada-based anti-smuggling organization warned.

In a letter addressed to the senator Ferdinand “Bong Bong” Marcos Jr., the National Coalition Against Contraband Tobacco (NCACT) said that imposing high taxes on cigarettes might also defeat the aim of the tax measure to raise additional funds for the government.

NCACT noted that aside from losing tax revenues from cigarettes, the illicit trade has also helped fund the activities of criminal gangs in Canada, and increased the incidence of smoking among the youth.

“While no two countries are exactly alike, we would like to take this opportunity, while you are in Canada, to share the Canadian experience with illicit tobacco in the hope that it will provide an international perspective for your domestic debate,” NCACT chief spokesperson Gary Grant stated in his letter to Marcos.

Grant noted that the high price differential between legal and illegal cigarettes and the availability of contraband tobacco has led to an explosion of the illicit trade in his country.

The Senate is scheduled to tackle its version of the sin tax reform bill that seeks to increase the taxes on tobacco and alcohol products in the country.

The Senate, however, is yet to decide on the rate of the increase it would introduce but most of the members of the chamber are in favor of adopting the version of Sen. Miriam Santiago who seeks to extract P60-billion from the said products’ taxes.

Grant believed that smuggling is an internationalized problem and it is only right for them to highlight the Canadian experience with other countries.

Grant said that independent estimates show Canada has lost about $2.1 billion in taxes annually to illegal cigarettes – enough reason for the government to be concerned.

Marcos, together with five other senators, recently attended the 127th Inter-Parliamentary Union Conference from October 21 to 26 at Quebec City, Canada.

Marcos is very vocal on his position against extreme tax increases that would certainly displace thousands of tobacco growers especially in his province in the Ilocos region.

Supporters of the sin tax reform bill have been pushing the legislation because they believe that higher cigarette price would discourage the poor and the youth from smoking.

But based on the experience of Canada, high cigarette taxes not only increased the number of juveniles smoking cigarettes but it also helped criminal syndicates raise funds because of smuggling.