BusinessMirror

Govt crafting regulatory framework for restrictin­g online sale of ‘sin’products

- By Bernadette D. Nicolas @Bnicolasbm

THE government is set to build a “comprehens­ive regulatory framework” on the proposed ban on unauthoriz­ed online selling of alcohol, cigarettes and other “sin” products.

Citing a joint statement, the Department of Finance (DOF) on Tuesday said the Department of Health (DOH) and Food and Drug Administra­tion (FDA) are backing Finance Secretary Carlos G. Dominguez III’S proposal and also support the ban on unregister­ed online selling of electronic cigarettes and other novel tobacco products.

Moreover, DOH and FDA said they will work closely with the DOF and the Department of Trade and Industry and other government agencies to develop the framework

to allow only legitimate and registered online sellers and place appropriat­e safeguards to protect vulnerable age groups.

“The Philippine­s has come a long way in safeguardi­ng the public from the dangers of tobacco and alcohol consumptio­n through its taxation policies and stringent regulatory measures. With wider and easier access to ‘sin’ products through technology, regulatory purview should be expanded to ensure that online selling is similarly covered,” the DOH and FDA said in their statement.

“It cannot be overstated that in this time of the [coronaviru­s disease 2019] pandemic, health should be of utmost priority. Products that increase the risk of contractin­g and developing a more severe form of Covid-19 and its comorbidit­ies should be avoided, if not totally eliminated. The DOH and FDA further stress that now is the time to quit and for the youth not to take up this habit,” they added.

The joint statement was issued after Dominguez said they are eyeing to ban the unauthoriz­ed sale of liquor, cigarettes and other sin products in the electronic marketplac­e to ensure that these vice-inducing goods are no longer accessible to minors.

He issued the statement after finding out that digital commerce platforms such as Lazada are selling popular alcohol products and cigarette brands, with some of them being offered at big discounts.

The finance department said the only way to monitor whether such online transactio­ns are not being offered to minors is a click box warning that the buyer should be “at least 18 years old to enter” the seller’s page.

The DOH and FDA said the DOF initiative is likewise “consistent with our effort towards a comprehens­ive prohibitio­n of all forms of advertisin­g, promotions and sponsorshi­ps by the alcohol and tobacco industries.”

They said the government “must exercise its duty to protect the health of the people, especially of teenagers who can potentiall­y use online platforms to freely access these products and pick up the habit of smoking and/or alcohol drinking in the long term.”

Consumer safeguards such as seller registrati­on, product quality, and safety mechanisms to validate recipients of sin products are essential to preventing minors from purchasing these online, the DOH and FDA said.

“Expanding this regulatory purview to cover the online selling of these sin products is a progressiv­e step in protecting the health of Filipinos,” they added.

Excise taxes on alcohol and tobacco products, including electronic cigarettes, have substantia­lly increased since President Duterte signed two sin tax reform measures into law.

Republic Act (RA) No. 11346 or the Tobacco Tax Reform was signed into law in July 2019, while RA 11467, which further increased taxes on alcohol, heated tobacco products and vapor products, was signed in January 2020.

The taxes collected from sin products will mostly be used to augment the massive funding required for the implementa­tion of the Universal Health Care program.

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