Driven by rising global demand and incentives from excise taxes, the Philippines witnessed a significant rebound in tobacco production in 2024. The National Tobacco Administration (NTA) reports a 7.46 percent increase in output, reaching 45.40 million kilograms. Factors contributing to this growth include reduced production from China, leading to higher global prices, and local government initiatives encouraging farmers to plant more tobacco.
The Philippines experienced a significant rebound in tobacco production in 2024, driven by rising global demand and incentives offered through excise taxes. According to the National Tobacco Administration ( NTA ), production surged by 7.46 percent to reach 45.40 million kilograms, up from 42.25 million kilograms in 2023.
NTA Deputy Administrator for Operations Nestor Casela attributed this growth to several factors, including a reduced tobacco output from China, the world's leading producer, which created a tight supply in the global market. This resulted in higher global prices, making Philippine tobacco a highly competitive product in terms of both price and quality. Casela further explained that local government units (LGUs) played a crucial role by encouraging farmers to plant more tobacco, motivated by the financial incentives stipulated under Republic Act (RA) 7171. This law allocates 15 percent of the excise tax collected from locally manufactured Virginia-type cigarettes to the beneficiary provinces, proportionally based on the volume of production. The increase in output was also supported by improved technology and the collaboration between the NTA, buyer firms, and tobacco growers. Meanwhile, the NTA anticipates that tobacco production in 2025 will reach 45.58 million kilograms. This projection is shared by the Philippine Tobacco Growers Association (PTGA) President Saturnino Distor, who believes that the combination of advanced technologies, NTA support, and strong buyer relationships will enable the country to achieve this target. Distor also highlighted the impact of fall armyworm infestations on corn crops, leading some corn planters to shift to tobacco cultivation. He noted that while the average output in Pangasinan is 2,600 kilograms per hectare, some areas have achieved yields as high as 4,000 kilograms per hectare
TOBACCO PRODUCTION PHILIPPINES GLOBAL DEMAND EXCISE TAXES LOCAL GOVERNMENT NTA PTGA
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Philippine Lawmakers Consider Tobacco Tax MoratoriumPhilippine lawmakers are considering a two-year moratorium on annual tobacco excise tax hikes to stabilize tax collection and address the growing illicit cigarette trade.
Read more »
Philippine Tobacco Institute Backs Suspension of Excise Tax Hikes to Combat Illicit TradeThe Philippine Tobacco Institute (PTI) supports proposals in the House of Representatives to temporarily suspend annual tobacco excise tax increases. PTI argues that this would stabilize prices, discourage consumers from purchasing illicit products, and ultimately increase government revenue. This proposal comes amid a growing black market and declining tax collections due to rising smoking prevalence.
Read more »
Philippine Tourism Revenue Soars to Record HighPhilippine tourism revenue reached an all-time high in 2024, exceeding previous records and demonstrating the sector's strength and resilience.
Read more »
Philippine Manufacturing Activity Soars to Pre-Pandemic PeakThe Philippine manufacturing sector showed robust growth in December, with a key measure reaching its highest level since April 2022. The S&P Global Manufacturing Purchasing Managers Index (PMI) surged to 54.3, driven by strong increases in output and new orders. This marks the 16th consecutive month of expansion in the sector.
Read more »
Philippine Stock Exchange Reallocates Funds to Acquire Controlling Stake in Philippine Dealing SystemThe Philippine Stock Exchange Inc. (PSE) is using funds from a 2018 stock rights offering to acquire a controlling stake in the Philippine Dealing System Holdings Corp. (PDSHC). This move consolidates the country's equities and fixed-income exchanges.
Read more »
Philippine Stock Exchange to Acquire Controlling Stake in Philippine Dealing System Holdings Corp.The Philippine Stock Exchange Inc. (PSE) is reallocating P110 million from a 2018 stock rights offering to acquire a controlling stake in the Philippine Dealing System Holdings Corp. (PDSHC). This move follows a series of share purchases by the PSE from other PDSHC stakeholders, aiming to consolidate the country's equities and fixed-income exchanges. The PSE's equity stake in PDSHC currently stands at 55.53 percent.
Read more »