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Tag: Philippines

  • Illicit Cigarettes Still Increasing in Philippines

    Illicit Cigarettes Still Increasing in Philippines

    Illicit cigarettes in the Philippines are still on the rise, according to PhilStar. The latest market survey shows that illicit cigarettes can be bought for PHP3 to PHP4 ($0.05 to $0.06) per stick. The lowest priced legal brand is PHP7 per stick.

    One of every five cigarettes sold comes from an illegal source. Illicit cigarette trade was 7.4 percent of total volumes in 2021, and in 2025, illicit cigarette trade is at 20.9 percent. Smoking prevalence has also increased from 18.5 percent of adults in 2021 to 23.2 percent in 2025. Youth smoking has doubled from 2.3 percent to 4.8 percent.

    The Philippines Bureau of Internal Revenue estimates that the country loses at least PHP50 billion annually from smuggling and illegal manufacturing.

    Legal cigarette production dropped from 62.6 billion sticks in 2021 to 39.1 billion in 2025.

    According to PhilStar, illicit cigarettes contain harmful chemicals like cadmium, lead, and contaminants like insect parts and human waste. Counterfeit “tuklaw” cigarettes contain synthetic cannabinoids, which have led to severe health issues.

  • Philippine Health Group Warns Against Tobacco Industry ‘Greenwashing’

    Philippine Health Group Warns Against Tobacco Industry ‘Greenwashing’

    On International Coastal Cleanup Day (September 20), advocacy group HealthJustice Philippines urged the government to reject “greenwashing” efforts by the tobacco industry and to end all forms of engagement with it, citing its harm to both health and the environment. The group suggested studies show 4.5 trillion cigarette butts are discarded annually globally, making them the world’s most abundant form of plastic waste.

    HealthJustice president Mary Ann Mendoza accused the industry of using corporate social responsibility projects, such as donations, tree-planting, and cleanup drives, to create a “false image” of environmental advocacy despite tobacco’s damaging impact. “These cannot be regarded as genuine acts of social responsibility, as tobacco products are inherently harmful and provide no societal benefit,” she said, also drawing parallels with ultra-processed food companies.

  • Philippines Seizes $10.9M Cigarettes in Bulacan

    Philippines Seizes $10.9M Cigarettes in Bulacan

    The Philippines’ Bureau of Customs (BOC) seized ₱605.3 million ($10.9 million) worth of smuggled cigarettes imported from China and Vietnam during a raid on a warehouse in Plaridel, Bulacan. Authorities confiscated 8,647 master cases of cigarettes that had bypassed customs inspection. Three people—the warehouse owner, a driver, and a helper—were arrested.

    Assistant Commissioner Vincent Maronilla said such products are usually distributed in provincial areas, and that the investigation continues to see how the illegal products made it into the country. The cigarettes will be destroyed under standard procedures, while criminal complaints will be filed against the warehouse proprietor.

  • Philippines Facing $720M Loss from Illicit Tobacco Trade

    Philippines Facing $720M Loss from Illicit Tobacco Trade

    The Philippine Tobacco Institute (PTI) warned that the proliferation of illicit cigarettes is costing the government over ₱40 billion ($720 million) annually in lost excise taxes while undermining public health by making cheap tobacco more accessible, especially to minors. PTI president Jericho Nograles said these unregulated products evade taxes, use expired or fake BIR stamps, and fail to meet quality standards, exposing consumers to health risks. The group urged the public to buy only cigarettes with valid tax stamps and report products sold below the legal price floor.

    Japan Tobacco International Philippines said high taxes have widened the price gap, driving demand for smuggled products. Meanwhile, the Bureau of Internal Revenue has filed 75 tax evasion cases worth ₱711.3 million ($12.8 million) against vape retailers and is pushing for expanded powers to shut down violators.

  • Philippines to Use Tobacco Products to Raise More Tax Money in 2026

    Philippines to Use Tobacco Products to Raise More Tax Money in 2026

    The Philippines’ Bureau of Internal Revenue (BIR) is looking to increase excise tax collections by 9.35% in 2026, mainly driven by tobacco products. In the 2026 Budget of Expenditures and Sources of Financing (BESF), the government is set to collect P359.65 billion ($6.1 billion) in excise taxes on selected goods, including P166.57 billion ($2.8 billion) from tobacco products.

    BIR Commissioner Romeo D. Lumagui, Jr. said in addition to Health department’s campaign to discourage tobacco use, the government loses an estimated P114 billion ($2 billion) in revenues due to illicit tobacco trade. He said illicit tobacco manufacturers are using economic zones to avoid paying excise taxes even though the products are sold in the Philippines.

    “If it’s meant for export and not for local consumption, there’s no excise tax,” Lumagui said. “It’s being manufactured here in the ecozones. That’s what they’re trying to show — that the license they’re getting is for exporting all these products.”  

  • 75 Tax Evasion Cases Filed in Philippines Crackdown

    75 Tax Evasion Cases Filed in Philippines Crackdown

    The Bureau of Internal Revenue (BIR) in the Philippines filed 75 tax evasion complaints against vape retailers nationwide, accusing them of evading a combined ₱711.3 million ($12.8 million) in taxes by selling smuggled and unstamped products.

    BIR Commissioner Romeo Lumagui Jr. said the cases, lodged with the Department of Justice today (August 20), involve violations ranging from unpaid excise duties to failure to file tax returns. The crackdown follows earlier billion-peso cases against major brands like Flava, Denkat, Flare, and Tap Fog.

    “The government loses billions from illicit vape sales — money that should fund health care and infrastructure,” Lumagui said, vowing continued action against both big and small operators.

  • Mindanao Tobacco Production Nearly Doubles

    Mindanao Tobacco Production Nearly Doubles

    Tobacco production in Mindanao surged 44% in 2024 as more farmers in the southern Philippines turned to the crop for its growing profitability, according to data from the National Tobacco Administration (NTA). Ma. Mercedes Ayco of NTA Mindanao said farmers are drawn to native “batek” tobacco for its fast growth and strong domestic demand. To support the industry, the NTA launched the five-year Sustainable Tobacco Enhancement Program (STEP) last year. The program offers irrigation, equipment, training, and marketing support to strengthen the tobacco sector across the island.

    Production rose from 5.4 million kilograms in 2023 to 9.7 million kg in 2024. Misamis Oriental led the pack, contributing 7.7 million kg—nearly 80% of the region’s total. Maguindanao del Sur posted a 62% increase in output. The number of tobacco farmers in Mindanao jumped from 4,630 in 2023 to over 8,100 in 2024, with cultivation areas expanding from nearly 3,000 to over 4,400 hectares. Top-quality leaves fetched up to P700 ($12.60) per kilo in Misamis Oriental.

    Tobacco remains the only crop in the Philippines with guaranteed floor prices, supporting livelihoods for over 2 million Filipinos, including 430,000 farmers and workers, the NTA said.

  • Philippines Raises Minimum Prices for Cigarettes and Vapes

    Philippines Raises Minimum Prices for Cigarettes and Vapes

    The Bureau of Internal Revenue (BIR) in the Philippines raised the minimum retail prices for cigarettes and vape products to reflect updated tax and production cost estimates, according to a revenue regulation issued July 18. The floor price for a pack of cigarettes is now set at ₱85.57 ($1.45), up from ₱78.58 ($1.34), with the estimated production cost increased to ₱10.25 ($0.17) per pack. Heated tobacco products now carry a floor price of ₱61.47 ($1.04) per 20-piece pack.

    For vape products, the minimum price for a 2ml nicotine pod surged to ₱353.18 ($6) from ₱180.67 ($3.07). Disposable pods are now priced at ₱183.31 (3.12), prefilled pods at ₱174.89 ($2.97), and disposable devices at ₱98.18 ($1.67)—all for 10ml products.

    The BIR collected ₱58.97 billion ($1 billion) in excise taxes from tobacco products in the first half of 2025, a 34% increase year-on-year. Vape excise tax collections soared by 738%, reaching ₱1.5 billion ($25.5 million).

    The updated prices will take effect 15 days after publication in the Official Gazette or the BIR’s website.

  • Philippines Cracking Down on Illegal Cigarettes, Criminals

    Philippines Cracking Down on Illegal Cigarettes, Criminals

    The Bureau of Internal Revenue (BIR) in the Philippines filed tax evasion charges totaling nearly ₱797 million ($14.3 million) against individuals involved in the large-scale illegal cigarette trade, intensifying its crackdown on illicit tobacco and vape operations. BIR Commissioner Romeo Lumagui Jr. announced that the charges stemmed from two recent raids.

    In Valenzuela City, authorities seized 600 master cases of untaxed cigarettes from a warehouse, with estimated tax liabilities of ₱200.7 million ($3.6 million). The lessee of the facility now faces criminal charges.

    A separate raid in San Rafael, Bulacan, uncovered an illegal cigarette factory allegedly operated by a Chinese national. The BIR recovered 7,884 master cases of illicit cigarettes and manufacturing equipment, worth ₱596.2 million ($10.7 million). The suspect also faces human trafficking charges after 155 workers were rescued from the facility.

    In a third similar bust, the National Bureau of Investigation (NBI) and the Department of Trade and Industry (DTI) arrested five individuals in Sta. Cruz, Manila, for allegedly selling unregistered vape products online. More than 25,000 vape units worth ₱8.16 million ($147,000) were confiscated in the joint operation, following test-buy and surveillance efforts. The suspects face charges for violating trade and consumer protection laws.

  • CAPHRA Urges Philippines Leaders to Reform Policies 

    CAPHRA Urges Philippines Leaders to Reform Policies 

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) said it acknowledges Philippines President Ferdinand R. Marcos Jr.’s decision to retain Dr. Teodoro Herbosa as Secretary of Health but called for urgent reforms to align the Department of Health’s (DOH) policies with global evidence on tobacco harm reduction. CAPHRA argued leadership must now prioritize science over ideology to address the Philippines’ stalled progress in reducing smoking-related deaths. 

    “While we respect the President’s decision, it is deeply concerning that the DOH continues to ignore the role of safer nicotine products in saving lives,” said Clarisse Yvette P. Virgino, CAPHRA’s Philippine Representative. “Secretary Herbosa’s reappointment must mark a turning point—a commitment to evidence-based strategies, not continued reliance on outdated prohibitionist policies.” 

    CAPHRA said that under Herbosa’s tenure, the Philippines has maintained regressive vaping regulations despite global precedents. It pointed to the UK’s National Health Service as an example, attributing its record-low 6% smoking rate to regulated vaping access, while Australia’s pharmacy-only model has fueled a thriving black market without reducing smoking rates. 

    “The DOH’s refusal to distinguish between deadly combustible tobacco and safer alternatives like vaping perpetuates needless deaths,” Virgino said. “Over 60% of Filipino smokers still wrongly believe nicotine causes cancer—a myth the DOH has done little to correct. 

    “The DOH’s current approach fails the ‘pub test.’ How can we claim progress when 16 million Filipinos still smoke and illicit trade thrives? Secretary Herbosa must choose: Will he defend outdated dogma, or embrace innovation that saves lives?”