Rampant smuggling can result in repercussions in the state of the country’s economy, government revenues and may lead to various economic problems, a latest study of Federation of Philippine Industries’ (FPI) Fight Illicit Trade (IT) movement.
According to study authored by the Center for Research and Communication Foundation, Inc. (CRCFI) up to P904.6 billion (Dh64.57 billion) worth of products have been smuggled into the Philippines from 2011 to 2015.
The study said largest value of smuggling was recorded in petroleum industry, amounting PHP680 billion (Dh 48.54 billion), from 2013 to 2015.
The impact and multiplier effects of the smuggled goods from the eight industries in five years resulted in o PHP495.5 billion losses in the country’s gross domestic product (GDP), PHP1.1 trillion losses in gross output, PHP77.2 billion losses in household income, and 291,070 displaced workers.
“Smuggling weaves a vicious network of negative economic repercussions. Its devastating effects on government revenues and industries spawn vicious circles of economic problems,” the study said. “Smuggling stirs up negative multiplier effects on gross domestic product, household income, and employment,” it added.
FPI Chairman Jesus Arranza said in a press briefing that the Bureau of Customs (BOC) should publish all reference value to strengthen transparency, cut red tape, and fight smuggling.
“There is a huge opportunity to plug leakages from illicit trade which can complement the tax reform efforts of the Duterte administration in its Build, Build, Build agenda,” Arranza said.
Photo credits: Flickr
