The illicit tobacco trade in the Philippines has surged by 200 percent in the past four years, prompting government, private sector, and industry stakeholders to call for a united front to combat its detrimental effects. Officials highlighted the need for comprehensive strategies, policy recommendations, and regional cooperation to curb the illicit trade and protect the livelihoods of local farmers.
Officials from the government, private sector, and industry stakeholders urged for a united front to combat the escalating illicit tobacco trade in the Philippines . The trade has surged by 200 percent over the past four years, posing a significant threat to public health , government revenue , and legitimate businesses.
Department of Agriculture (DA) Secretary Francisco Tiu Laurel emphasized the need for a comprehensive approach, calling for collaboration to strengthen strategies against illicit tobacco while supporting local farmers. He acknowledged that while excise taxes are crucial for public health and revenue generation, they have inadvertently driven consumers towards the illicit market. Jericho Nograles, president of the Philippine Tobacco Institute, confirmed the alarming rise in illicit cigarettes, stating that their share in the Philippines jumped from 5.4 percent in 2020 to 16.4 percent in 2024, with projections reaching nearly 19 percent by 2025. Nograles highlighted the significant price gap between legal and illegal tobacco products, the Philippines' extensive coastline, and the influence of organized crime groups as key factors fueling the illicit trade. He stressed that enforcement alone is insufficient and proposed policy recommendations, including a temporary moratorium on excise tax increases, regional cooperation among ASEAN member states, and the implementation of track-and-trace systems. Despite the challenges, the tobacco industry remains a vital source of revenue. From January to November 2024, tax collections from tobacco reached P128.98 billion, while vape products contributed P1.35 billion. Budget Secretary Amenah Pangandaman commended the enactment of Republic Act No. 12022, the Anti-Agricultural Economic Sabotage Act, which aims to prevent the entry of smuggled tobacco and impose stricter penalties. National Tobacco Administration (NTA) administrator Belinda Sanchez echoed the call for a holistic strategy, emphasizing the need to address both the symptoms and root causes of the illicit tobacco trade
Illicit Tobacco Trade Philippines Excise Taxes Organized Crime Agriculture Government Revenue Public Health
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