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Tag: Philippines

  • Philippine Authorities Pushing for Tougher Penalties in Illicit Tobacco Fight

    Philippine Authorities Pushing for Tougher Penalties in Illicit Tobacco Fight

    Philippine lawmakers and prosecutors are calling for stronger prosecution efforts to combat the country’s growing illicit tobacco trade, arguing that product seizures alone have failed to deter organized criminal networks. Speaking at the Third International Tobacco Summit, House Public Order and Safety Committee Chair Rolando Valeriano urged law enforcement to prioritize securing convictions, while noting that illicit trade remains highly profitable if offenders are not held accountable. The push comes as a recent EU-ASEAN Business Council and Euromonitor International study estimated the Philippines lost about ₱141 billion ($2.3 billion) in tax revenue over the past two years due to illicit tobacco products, with illegal products accounting for roughly one-quarter of cigarette sales and more than 80% of vape sales.

    Officials also highlighted proposals for an Anti-Illicit Trade law that would strengthen prosecutions, improve interagency coordination, and introduce track-and-trace technology, while prosecutors acknowledged that many existing cases require additional evidence before they can proceed to trial.

  • Philippines Seizes $48M in Illegal Cigarettes

    Philippines Seizes $48M in Illegal Cigarettes

    Philippine authorities are preparing to destroy more than ₱3 billion ($48 million) worth of smuggled cigarettes after seizing 59 container vans of the Modern Gia brand in coordinated operations across Cebu and Manila. The Bureau of Customs and the National Bureau of Investigation said the shipment, believed to have originated in China, is one of the country’s largest cigarette smuggling busts this year and announced plans to file multiple criminal charges against those involved, including financiers and organizers, under customs, tax, anti-economic sabotage, and potential intellectual property laws.

    Officials said the cigarettes will be shredded rather than auctioned to prevent them from re-entering the market, while investigations continue into the shipment’s origins, associated companies, and any public officials who may have facilitated the operation.

  • Philippines’ Tobacco Taxes Rise for First Time in Three Years

    Philippines’ Tobacco Taxes Rise for First Time in Three Years

    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).

  • Philippine NTA Helping Tobacco Farmers Diversify

    Philippine NTA Helping Tobacco Farmers Diversify

    The Philippines’ National Tobacco Administration (NTA) is expanding efforts to diversify income sources for tobacco-growing communities through livelihood and entrepreneurship training programs. NTA-Isabela, in partnership with the Isabela School of Arts and Trades-TESDA, conducted food-processing training for 30 tobacco farmers and family members in Ilagan City, teaching participants how to produce value-added products such as kimchi and pichi-pichi.

    The training was carried out under the Farmers Organization and Development Program (FODP) and forms part of the government’s broader rural development agenda aimed at improving household incomes and reducing reliance on a single crop. NTA officials said the initiative is designed to help farmers develop alternative income streams, encourage small-scale enterprise creation, and strengthen economic resilience amid changing agricultural and market conditions.

  • Philippines Urged to Lead ASEAN Effort Against Growing Illicit Tobacco Trade

    Philippines Urged to Lead ASEAN Effort Against Growing Illicit Tobacco Trade

    The Philippines has been urged to spearhead a coordinated ASEAN response to illicit tobacco trade as it assumes the bloc’s chairmanship, with government and industry representatives warning that tobacco smuggling has evolved into a sophisticated regional criminal enterprise. Speaking at the Third International Tobacco Summit in Pasig City, participants called for harmonized enforcement and regulatory strategies across Southeast Asia to prevent transnational syndicates from exploiting gaps between national markets.

    According to Euromonitor International, illicit tobacco in the ASEAN-6 markets—comprising the Philippines, Indonesia, Malaysia, Vietnam, Thailand and Singapore—resulted in an estimated $12.6 billion in lost government revenue over the past two years, with illicit volumes projected to grow from 145 billion sticks in 2025 to 170 billion sticks by 2028. Domestically, the Philippine Tobacco Institute estimated the country’s illicit tobacco market at P141 billion ($2.3 billion) and called for stronger regional collaboration to combat increasingly sophisticated smuggling networks. Industry representatives also advocated greater use of artificial intelligence tools to improve cargo screening and identify suspected tobacco smuggling operations. Japan Tobacco International regional anti-illicit trade director Valentin Dinca said the Philippines ranks among the strongest markets globally in combating illegal tobacco trade, while noting further opportunities to enhance enforcement capabilities and reduce illicit market activity.

  • Philippine Tobacco Growers Warn of Oversupply Risk

    Philippine Tobacco Growers Warn of Oversupply Risk

    Philippine tobacco growers are expressing concern over a potential supply glut after strong leaf prices last year encouraged farmers to expand planting, raising fears of a market downturn. Philippine Tobacco Growers’ Association President Saturnino Distor said non-government organizations and local officials have been urging farmers to increase tobacco cultivation, but cautioned that favorable pricing conditions are unlikely to be repeated amid rising global production. He noted that major producer Malawi has significantly increased output in response to last year’s high prices, potentially flooding international markets and putting downward pressure on leaf prices.

    The National Tobacco Administration (NTA) warned that oversupply conditions could persist for two to three years and is preparing information campaigns to discourage excessive production and help protect farmers from a possible price collapse. NTA Deputy Administrator for Operations Nestor Casela said buyers have signaled reluctance to purchase additional leaf while surplus inventories remain in the market. The regulator indicated that oversupply concerns are concentrated in Virginia tobacco, while demand for Burley and native tobacco remains relatively stable. For 2026, the NTA forecasts national tobacco production of about 51 million kg, including approximately 20 million kg of Virginia tobacco, and has set buying prices of up to P98 ($1.57) per kg for higher-grade leaf and P62 ($0.99) per kg for lower-grade and rejected tobacco.

  • Philippines Urges Early Tobacco Planting Amid El Niño Threat

    Philippines Urges Early Tobacco Planting Amid El Niño Threat

    The Philippines’ National Tobacco Administration (NTA) is urging farmers to begin planting tobacco earlier than usual to reduce the potential impact of an anticipated El Niño-induced dry spell, while maintaining its forecast for stable tobacco production in the 2025-2026 crop year. NTA Administrator Belinda Sanchez said the agency expects total tobacco output to reach about 51 million kg, including approximately 20 million kg of Virginia tobacco, broadly in line with last year’s levels.

    To help crops avoid peak summer dryness, the NTA is advising farmers to complete planting by mid-December rather than extending activities through the end of the month. Deputy Administrator Nestor Casela said earlier that planting would allow crops to benefit from existing soil moisture and improve their chances of surviving prolonged dry conditions. The agency has also prepared contingency support through its risk management and contract-growing programs for farmers affected by weather-related losses. Despite climate concerns, the NTA said market conditions remain favorable, with surplus inventories from the previous harvest largely absorbed by buyers. Trading of Virginia tobacco is expected to continue through the end of the month, supported by demand from major cigarette manufacturers including Japan Tobacco International and Philip Morris International, which source leaf through wholesale dealers such as Universal Leaf and Trans Manila Inc.

  • Philippines Hosting Third International Tobacco Summit

    Philippines Hosting Third International Tobacco Summit

    The Philippines will convene the Third International Tobacco Summit on June 18 in Pasig City with the stated goal of strengthening coordination against the illicit tobacco and nicotine trade. Citing an EU–ASEAN Business Council and Euromonitor study, officials estimate the country lost about ₱141 billion ($2.4 billion) in revenue from illicit tobacco between 2024 and 2025, with 85.6% of e-vapes sold in the Philippines classified as illegal.

    The summit will focus on enforcement gaps, taxation issues, regulatory coordination, and regional cooperation among ASEAN states, alongside a planned joint commitment by government agencies to intensify action against illicit operators. The Department of Agriculture and the National Tobacco Administration, along with the Bureau of Customs, Philippine National Police, Department of Justice, and other agencies, are expected to participate.

  • Philippine Health Groups Call for Science in Nicotine Control

    Philippine Health Groups Call for Science in Nicotine Control

    Health advocates, academics, and industry representatives urged Philippine lawmakers to base proposed amendments to Republic Act 11900 on scientific evidence, while stepping up enforcement against illegal vape products during a recent Senate hearing. Stakeholders argued that regulations should balance youth protection with access to smoke-free alternatives for adult smokers.

    Dr. Lorenzo Mata of Quit for Good said strict safeguards, including age restrictions and product standards, remain essential, while Professor Michael Eric Castillo of CAPS and Partners cautioned that overly restrictive rules could drive consumers toward the illicit market. The growth of unauthorized vape sales emerged as a key issue, with participants calling for stronger enforcement as the Senate reviews potential changes to the country’s vape law.

  • Zyn Expanding Flavors in the Philippines

    Zyn Expanding Flavors in the Philippines

    Philip Morris International expanded its Zyn nicotine pouch portfolio in the Philippines with the introduction of new variants, including Cool Breeze in a 1.5mg strength and the Tropical flavor in 3mg and 6mg strengths. The update broadens the brand’s existing strength architecture in the market, which now spans 1.5mg, 3mg and 6mg across multiple flavors listed on its official Philippines website.

    According to the company, the 1.5mg Cool Breeze variant is positioned as a lower-strength option aimed at adult nicotine consumers who are new to nicotine pouches, while higher strengths will continue to serve existing users. The Tropical flavor is currently available in 3mg and 6mg formats, further expanding ZYN’s flavor range in the Philippines.

    The Philippine portfolio also includes several flavors such as Fresh Breeze, Dark Purple, and Espressino across different nicotine strengths.