The Philippines’ tobacco excise tax collections rose 12.25% to ₱150.9 billion ($2.41 billion) in 2025, exceeding the Bureau of Internal Revenue’s (BIR) target of ₱149.6 billion ($2.39 billion) and ending a three-year streak of missed revenue goals. The increase was driven by a 29.2% rise in tobacco product removals to 2.9 billion units, including cigarettes, cigars, heated tobacco products, and vapor products, along with stronger enforcement against illicit trade and enhanced monitoring through tax stamps, floor-price rules, and other compliance measures.
BIR Commissioner Charlito Martin Mendoza said the agency plans to further strengthen its digital track-and-trace capabilities through the Special Products Automated Revenue Collection System (SPARCS) to improve supply chain oversight and combat tax evasion. For 2026, the BIR has set a tobacco excise tax collection target of ₱166.6 billion ($2.7 billion) as part of its overall excise tax revenue goal of ₱359.7 billion ($5.8 billion).
