Illicit cigarettes in the Philippines are still on the rise, according to PhilStar. The latest market survey shows that illicit cigarettes can be bought for PHP3 to PHP4 ($0.05 to $0.06) per stick. The lowest priced legal brand is PHP7 per stick.
One of every five cigarettes sold comes from an illegal source. Illicit cigarette trade was 7.4 percent of total volumes in 2021, and in 2025, illicit cigarette trade is at 20.9 percent. Smoking prevalence has also increased from 18.5 percent of adults in 2021 to 23.2 percent in 2025. Youth smoking has doubled from 2.3 percent to 4.8 percent.
The Philippines Bureau of Internal Revenue estimates that the country loses at least PHP50 billion annually from smuggling and illegal manufacturing.
Legal cigarette production dropped from 62.6 billion sticks in 2021 to 39.1 billion in 2025.
According to PhilStar, illicit cigarettes contain harmful chemicals like cadmium, lead, and contaminants like insect parts and human waste. Counterfeit “tuklaw” cigarettes contain synthetic cannabinoids, which have led to severe health issues.
