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Tag: Philippines

  • PMFTC Remains Top Buyer of Philippine Tobacco

    PMFTC Remains Top Buyer of Philippine Tobacco

    Philippines’ National Tobacco Administration (NTA) recognized Philip Morris Fortune Tobacco Corporation as the largest buyer of Philippine-grown tobacco for the third consecutive year, highlighting the company’s continued support for the country’s tobacco farming sector. In 2025, PMFTC purchased 8.3 million kg of locally grown tobacco — 69% of the 12.1 million kilograms delivered to domestic manufacturers. NTA Administrator Belinda Sanchez said PMFTC’s sustained buying provides tobacco farmers with a stable and reliable market, particularly as the industry prepares for a challenging growing season.

    PMFTC said it remains committed to investing in long-term partnerships with farmers, trading partners, and government agencies to strengthen the Philippine tobacco value chain and help keep locally grown tobacco competitive in domestic and international markets.

  • Philippine Tax Hikes Reduced Revenue, Fueled Illicits: Economist

    Philippine Tax Hikes Reduced Revenue, Fueled Illicits: Economist

    American economist Arthur Laffer said the Philippines may have reached the point where continued increases in tobacco excise taxes are reducing government revenue while accelerating illicit cigarette trade. Citing government data, Laffer said tobacco excise collections peaked at PHP176 billion ($2.8 billion) in 2021 before declining to PHP134 billion ($2.1 billion) in 2024 despite ongoing annual tax increases, arguing the trend reflects the “Laffer Curve” effect.

    He also referenced a University of Asia and the Pacific study estimating illicit cigarette trade cost the government PHP22 billion ($352 million) in lost tax revenue and contributed to broader economic losses. Laffer urged policymakers to adopt a data-driven approach that balances public health and fiscal objectives, including lower tax rates for smoke-free nicotine products to encourage adult smokers to switch while helping curb the illicit market.

  • Philippines Tightening Controls on Growers After 27% Surplus

    Philippines Tightening Controls on Growers After 27% Surplus

    The Philippine National Tobacco Administration (NTA) is tightening production controls for the 2026-2027 planting season following a tobacco leaf surplus in the previous crop year. Citing a volatile global buyers’ market, NTA Administrator Belinda Sanchez said the agency will emphasize contract growing, premium leaf quality, and production aligned with market demand to protect growers from oversupply and rejected crops.

    The NTA is encouraging the country’s approximately 35,000 uncontracted tobacco farmers to join its Tobacco Contract Growing System, after reporting that flue-cured Virginia tobacco production exceeded purchase commitments by about 27% (5 million kg) last season. The agency is also promoting soil-area matching requirements to improve leaf quality and better meet buyer specifications.

  • 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.