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Tag: Philippines

  • 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.

  • Philippines Seizes $1.9M in Counterfeit Cigarettes

    Philippines Seizes $1.9M in Counterfeit Cigarettes

    The Philippine Bureau of Customs seized an estimated P105.58 million ($1.9 million) worth of illicit cigarettes in Bataan, uncovering more than 1,000 master cases transported in 12 vehicles and traced to shipments originating from China, Vietnam, and South Korea. Authorities said the cigarettes—bearing brands including Modern, RGD, Nise Baisha, and President—were intended for distribution in northern and central Luzon, underscoring ongoing enforcement challenges as Customs intensifies its anti-smuggling campaign amid revenue shortfalls and a higher 2026 collection target.

  • Philippines Planting New Sources for Tobacco-Curing Fuel

    Philippines Planting New Sources for Tobacco-Curing Fuel

    The Philippines’ National Tobacco Authority said it will roll out a five-year sustainable fuelwood program this year to support flue-curing tobacco farmers while promoting reforestation in key growing areas. Under the Kahuyang Pangkabuhayan at Pangkalikasan initiative, 80 hectares of alienable and disposable land will be planted mainly with fast-growing trees such as ipil-ipil, kakawate, and bamboo to supply fuelwood needs and restore ecological integrity. The program, developed with the Environment Department and local governments, is intended to reduce pressure on natural forests while providing additional livelihood opportunities for tobacco-farming communities through 2030.

  • Philippines Cracking Down on Illicits, Many Drug Laced

    Philippines Cracking Down on Illicits, Many Drug Laced

    The Philippine National Police (PNP) is stepping up efforts to curb the smuggling and spread of “Thuoc Lao,” or black cigarettes, as part of a broader crackdown on illegal tobacco products. Acting PNP chief Lt. Gen. Jose Melencio Nartatez Jr. said police are strengthening intelligence operations with the Bureau of Customs, Department of Health, and other agencies, following a directive from President Ferdinand R. Marcos Jr. to protect public health.

    Authorities say Thuoc Lao—also known locally as “tuklaw”—is a highly potent tobacco product from northern Vietnam, with nicotine levels reportedly reaching up to 9%, far higher than conventional cigarettes. Some variants are also suspected of being laced with synthetic cannabinoids. The product is not authorized for import by the National Tobacco Administration, and officials raised alarms last year after reports that teenagers experienced seizure-like symptoms after smoking it.

    The crackdown comes amid broader concerns about illicit nicotine products entering the Philippine market. The Philippine Drug Enforcement Agency has warned that some vape products may contain the same synthetic cannabinoids found in Thuoc Lao, prompting closer coordination between law enforcement and health authorities to prevent further spread and protect youth.

  • IQOS Opens Flagship Boutique in Philippines

    IQOS Opens Flagship Boutique in Philippines

    PMFTC, the Philippine affiliate of Philip Morris International, opened a new IQOS Boutique in Glorietta, marking its latest flagship retail space in the country. The boutique, which opened on December 19, is designed as a multi-sensory environment showcasing IQOS smoke-free technology for legal-aged nicotine users.

    PMFTC said the Glorietta location reflects its continued focus on smoke-free alternatives and premium retail experiences, featuring interactive elements such as scent and personalization zones, limited-time engraving services, and curated launch activities. Company executives said the boutique aims to provide adult smokers with a dedicated space to learn about and engage with smoke-free options as part of PMI’s broader smoke-free vision in the Philippines.

  • Philippines Requires Licenses for Vape Products With Health Claims

    Philippines Requires Licenses for Vape Products With Health Claims

    The Philippines’ Food and Drug Administration (FDA) mandated that all establishments selling vaporized nicotine and non-nicotine products (VNNPs) and novel tobacco products (NTPs) with medicinal or therapeutic claims must secure a License to Operate. Under Advisory 2025-1487, manufacturers, importers, distributors, wholesalers, and retailers are required to apply for licenses as pharmaceutical establishments.

    The FDA also said such products must be registered as pharmaceutical products through the Center for Drug Regulation and Research. The agency urged stakeholders to comply, citing the need to ensure the safety, efficacy, and quality of vape and novel tobacco products making health-related claims.