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Tag: Philippines

  • Philippines Seizes $4M in Undeclared Cigarettes

    Philippines Seizes $4M in Undeclared Cigarettes

    Philippine authorities have seized 637 cases of undeclared cigarettes valued at about P235 million ($4 million) at the Port of Batangas, according to the Bureau of Customs. The shipment, which arrived aboard a vessel from the United Arab Emirates, reportedly contained MAC-branded cigarettes but was not listed in the bill of lading, inward foreign manifest, or discharge list, prompting a non-intrusive inspection and subsequent physical examination.

    Officials said the cigarettes were not supported by proper import documents and that the listed consignee was not authorized to import tobacco products, suggesting an attempt to smuggle regulated goods into the country. The case is being investigated under the provisions of the Customs Modernization and Tariff Act.

  • Philippine Health Groups Want Full Tobacco, Vape Ban

    Philippine Health Groups Want Full Tobacco, Vape Ban

    Public health groups in the Philippines are urging the government to impose a total ban on e-cigarettes, heated tobacco products (HTPs), and other nicotine delivery systems, citing their health risks and rising youth uptake. The renewed push follows Myanmar becoming the eighth ASEAN country to enforce a vape ban, while Philippine lawmakers continue to debate tax rates for tobacco and vape products. Data show that around 14% of Filipino youth and 2% of adults use e-cigarettes.

    HealthJustice board member Dr. Jaime Galvez Tan said a comprehensive ban would offer the strongest public health protection, ensure regulatory clarity, and complement calls for higher, uniform tobacco taxes. Dr. Ulysses Dorotheo of SEATCA noted that a total ban would also help address tax administration challenges, curb illicit trade, and align with the Philippines’ obligations under the WHO Framework Convention on Tobacco Control.

  • CAPHRA Develops THR Policy

    CAPHRA Develops THR Policy

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates released a policy framework urging governments to adopt tobacco harm reduction (THR) as a regulated, health-led strategy to reduce deaths and disease from combustible tobacco and high-risk oral products. The framework emphasizes helping adult smokers quit or fully switch to lower-risk alternatives while preventing youth initiation, curbing marketing-driven uptake, and addressing unintended consequences such as underage use and illicit trade.

    CAPHRA Philippines spokesperson Clarisse Virgino said THR should be outcomes-led, combining risk-proportionate regulation with robust product standards, quality controls, and active enforcement to ensure safer real-world practices. The organization highlights that in regions with high tobacco-related harm, a regulated THR approach can accelerate public health gains while maintaining strong safeguards for young people.

    The complete policy framework can be accessed here.

  • Philippines Losing $425M to Illicits

    Philippines Losing $425M to Illicits

    The Philippines is losing an estimated P25 billion ($425 million) annually in cigarette excise taxes due to the illicit tobacco trade, according to a policy brief by the Center for Market Education (CME). The report, which compares seven ASEAN economies, found that smuggled cigarettes account for about 16% of the domestic market, with some estimates reaching as high as 21%. CME CEO Carmelito Ferlito said the foregone revenue represents a significant missed opportunity to fund public services.

    The brief noted that the lost money is equivalent to 12.5% of the national health budget and 3.6% of the education budget, funds that could otherwise support hospitals, schools, and climate programs. While tobacco excise collections surged after major reforms in 2012, revenues peaked in 2021 and have declined since, raising concerns that rates may have exceeded the revenue-maximizing point on the Laffer Curve. CME urged policymakers to align tax policy with stronger enforcement, stressing that taxation is effective only when compliance is enforceable and credible.

  • JTI Backs Unitary Tax for Vape Products in Philippines

    JTI Backs Unitary Tax for Vape Products in Philippines

    Japan Tobacco International backed a proposal to unify excise taxes on vapor products in the Philippines, telling lawmakers that a single rate would curb tax avoidance and strengthen revenue collection. Speaking at a House Ways and Means Committee hearing, JTI Director for Fiscal and Regulatory Affairs Mario Zinampan said differing tax rates for salt nicotine and freebase products create opportunities for misclassification and regulatory arbitrage, effectively enabling another form of illicit trade. He said harmonizing rates would help ensure a level playing field and prevent product misdeclaration.

    JTI also argued that a unified vape tax should be aligned with the rate imposed on heated tobacco products, noting that both are recognized alternatives to combustible cigarettes. Zinampan cited the legislative intent behind Republic Act No. 11467, which set the excise tax framework for combustible and non-combustible nicotine products, and said aligning vapor and heated tobacco taxes would promote coherence in the system. The remarks supported Romero ‘Miro’ Quimbo, chairperson of the House Ways and Means Committee, who renewed his call for a unitary vape tax, citing rising youth nicotine use at the hearing.

  • DoF Says Illicits Threaten Philippines Fiscal Stability

    DoF Says Illicits Threaten Philippines Fiscal Stability

    Philippine finance officials are raising alarms over the growing impact of illicit cigarette trade, warning that smuggling is driving down tobacco excise tax revenues and threatening funding for public health programs. The Department of Finance (DoF) said tobacco tax collections fell 24% from P174.6 billion ($3 billion) in 2021 to P132.3 billion ($2.2 billion) in 2024, despite rising smoking rates, with Finance officials describing illegal tobacco as a direct threat to fiscal stability and healthcare financing.

    Officials estimate the government may have lost up to P172 billion ($2.9 billion) in tobacco excise revenue between 2020 and 2025 due to smuggling, with illegal cigarettes accounting for roughly 20% of the market. Lawmakers and industry representatives said the price gap between legal packs, which sell for P125 to P200 ($2.13 to $3.40), and illicit packs priced as low as P30 ($0.51) is fueling demand, while also pointing to regulatory loopholes and misdeclaration of products as factors worsening the problem. Authorities are now considering measures including harmonizing vape tax rates, introducing minimum retail pricing, and strengthening coordination between regulatory agencies to curb illegal sales.

  • Philippines Customs Busts Illegal Cigarette Factory

    Philippines Customs Busts Illegal Cigarette Factory

    The Philippines Bureau of Customs (BOC) shut down an alleged illegal cigarette manufacturing facility in Mexico, Pampanga, after authorities discovered locally made cigarettes branded “Two Moon,” cigarette-making machines, and materials linked to several brands during an operation in Barangay Panipuan. The BOC said similar brands were seized in a recent Batangas operation, suggesting a possible distribution network, while the Bureau of Internal Revenue and Bureau of Immigration are verifying tax stamp compliance and the legal status of six Chinese nationals found at the site alongside 63 Filipinos. Customs officials are inventorying the seized items to assess duties, taxes, and potential violations.

  • Philippines Seeking Tougher Penalties for Cigarette Smuggling

    Philippines Seeking Tougher Penalties for Cigarette Smuggling

    A bill filed in the Philippine Congress seeks to impose stiffer penalties on illegal cigarette importation and smuggling by amending provisions of the National Internal Revenue Code and the Customs Modernization and Tariff Act. House Bill 6965, or the proposed Anti-Illicit Cigarette Import Trade and Smuggling Act, would criminalize the importation, manufacture, sale, transport, storage, or possession of cigarettes without full payment of excise taxes or required tax stamps, with possession of unstamped cigarettes serving as prima facie evidence of a violation. The measure also proposes enhanced penalties for organized and large-scale smuggling operations, with its author, 1Tahanan party-list Rep. Nathaniel Oducado, citing the impact of illicit trade on government revenues, legitimate businesses, and public health.

  • Philippines to Investigate Politicians Complicit in Cigarette Smuggling

    Philippines to Investigate Politicians Complicit in Cigarette Smuggling

    Philippine lawmakers announced they will investigate alleged political involvement in large-scale cigarette smuggling that cost the government more than P44.8 billion ($762 million) in lost sin tax revenue last year, House Ways and Means Committee chair and Marikina Rep. Miro Quimbo said. Speaking at the Kapihan sa Manila Bay forum, Quimbo warned of “impunity” in the entry of illegal cigarettes, noting that about half of sin tax collections fund healthcare programs such as PhilHealth. He said cigarette smuggling not only deprives the state of revenue but also makes cigarettes more accessible to young people. A resolution seeking the probe will be referred to the House plenary and then to the Ways and Means Committee, with hearings expected within two weeks. Quimbo added that cigarette smuggling, including products originating from Thailand and Malaysia via transshipment, now falls under the anti-agriculture smuggling law.

    Source: The Philippine Star

    https://www.philstar.com/nation/2026/01/22/2502596/house-probe-pols-over-cigarette-smuggling
  • Withheld Funds Crippling Philippine Tobacco Farmers

    Withheld Funds Crippling Philippine Tobacco Farmers

    Billions of pesos (1 peso currently equals 0.017 USD) in tobacco excise tax shares earmarked for Philippine tobacco-growing provinces from 2023 to 2025 remain unreleased, triggering mounting frustration among industry leaders and farmers in the Ilocos region, according to the Philippine Star. Long regarded as the “Solid North” that underpinned President Ferdinand Marcos Jr.’s electoral support, tobacco farmers now warn that the government’s failure to remit funds mandated under Republic Act 7171 threatens rural livelihoods amid rising production costs. Industry representatives said the prolonged delay has crippled critical programs intended to support farmer self-reliance and local development.

    Former Ilocos Sur governor Luis “Chavit” Singson, author of RA 7171, said that despite the signing of the P6.79-trillion ($115.4 billion) 2026 national budget, excise tax shares from the previous three years remain unpaid. He warned that the withholding of funds has created service gaps that undermine socio-economic stability in tobacco-producing areas, preventing local government units from addressing urgent needs and advancing infrastructure and agricultural projects. Singson emphasized that tobacco remains a pillar of the national economy and that the law was designed to provide local government units with consistent, predictable resources.

    Singson expressed cautious optimism that the appointment of Acting Budget Secretary Rolando Toledo could help resolve compliance bottlenecks delaying the releases. He urged the national government to honor its commitments, calling for the funds to be released within 30 days to avert further hardship. Pointing to Ilocos Sur’s plans to expand irrigation, road networks, and tourism infrastructure, he described it as ironic that excise tax shares vital to these initiatives remain withheld, despite the province being recognized by the Commission on Audit as the country’s richest.