Some functions...

hence, the value of smuggled goods is treated as a decrease in domestic production or the gross output. The value of the decrease in gross output is at R1.1 trillion,” Fight IT said.

In terms of household income, the estimated decrease is valued at R77.2 billion while, the number of displaced workers — defined as actual jobs or employment opportunities lost — is estimated at 291,070.

“It has a negative impact on economic growth, social welfare, education, public safety and private investments," UA&P's Rolando Dy, project study head said.

"Illicit trade reduces government revenues needed for inclusive growth and poverty reduction, damages legitimate businesses and entrepreneurship and causes loss of legitimate employment,” he added.

After turning over the report to the DOF, FPI Chairman Jesus Arranza said Fight IT said that a forceful and stronger collaboration between the government and the affected industries is necessary to address this growing crisis.

"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.

"Illicit trade cuts across all industries from agricultural products to heavy industries. It is a crime against the economy and humanity that calls for a zero tolerance approach from all of us," he added.