Lapeña: Smuggling to rise due to TRAIN Law

Customs Commissioner Isidro Lapeña opens a container carrying undervalued sport utility vehicles at the Port of Cebu. Lapeña says they were expecting a spike in smuggling because of the TRAIN Law. CEBU DAILY NEWS / JUNJIE MENDOZA

Customs Commissioner Isidro Lapeña on Monday said they were expecting an upsurge in smuggling because of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

“People are being informed through the media that we have intensified our operation against smuggling. We expect an upsurge in smuggling because of the TRAIN Law,” Lapeña said at a press conference held at the Department of Justice (DOJ).

Lapeña said the spike in smuggling would be due to higher taxes under the TRAIN Law.

“Even before the TRAIN Law, smuggling is already something that is profitable to people engaged in shortchanging the government of its rightful revenue. Lalo na ngayon [especially now],” Lapeña said.

The TRAIN Law signed by President Rodrigo Duterte on Dec. 19, 2017, amended several sections of the National Internal Revenue Code of 1997.

The law has doubled the cost of stamp tax on bills of lading or receipts. It also raised the stamp tax on certificates as well as on charter parties and similar instruments. /cbb