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Tag: Philippines

  • 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?” 

  • PMFTC Eyes Double-Digit Growth for IQOS in the Philippines

    PMFTC Eyes Double-Digit Growth for IQOS in the Philippines

    PMFTC Inc., the Philippine affiliate of Philip Morris International (PMI), is targeting double-digit growth this year for its smoke-free product, IQOS, as it pushes to expand its market in the country.

    In an interview, PMFTC President Gijs de Best said the Philippines now has around 150,000 IQOS users since the product’s launch in 2020. “People don’t understand what the problem is related to smoking because in the Philippines, 60% of people believe that nicotine is the most harmful ingredient, which it is not,” he said. “It’s the burning that is causing the issue. Simply, when you use a cigarette, once it is lit, harmful chemicals are released. What our technology is all about is heating, not burning.”

    Because it was launched in the market during the COVID-19 pandemic, IQOS gained traction mainly through word of mouth. Now, PMFTC aims to accelerate growth by increasing education around the benefits of heated tobacco. To support its expansion, PMI inaugurated a ₱8.8-billion ($150 million) manufacturing plant in Tanauan, Batangas last year to produce IQOS and other smoke-free products locally. The Philippines is one of 96 global markets for IQOS, with Indonesia currently being the largest in the region.

  • $730K Worth of Smuggled Indonesian Cigarettes Seized in Philippines

    $730K Worth of Smuggled Indonesian Cigarettes Seized in Philippines

    Authorities in the Philippines intercepted a major smuggling attempt involving P43 million ($731,000) worth of Indonesian cigarettes last week off the coast of Zamboanga City, officials confirmed. Police reported two outrigger-type pump boats carrying 749 boxes of imported cigarettes were intercepted on June 18, roughly two miles from Santa Cruz Island. The six crew members, all from Sulu province, were taken into custody.

    The seized contraband was turned over to the Bureau of Customs Region 9 for proper disposition. Over the past eight months, PRO-9 units have confiscated more than 10 tons of Indonesian-branded cigarettes in multiple operations across Zamboanga Peninsula and nearby cities, including Dapitan, Dipolog, and Pagadian.

  • Philippines Planning Track-and-Trace System for Consumer Use

    Philippines Planning Track-and-Trace System for Consumer Use

    The Bureau of Internal Revenue (BIR) in the Philippines is set to roll out a digital track-and-trace system next year that will enable the public to verify the legitimacy of cigarette and vape products using QR codes, BIR Commissioner Romeo Lumagui Jr. said.

    The new system, being developed through a public-private partnership, will allow consumers to scan QR codes on product packaging using their mobile phones. The scanned information will link to a secure website providing detailed data on product origin, legitimacy, and tax compliance.

    Currently, the BIR uses its Internal Revenue Stamp Integrated System exclusively, which only government devices can verify. The planned QR tracker expands verification capabilities to the public, helping expose illicit cigarette and vape products and address loopholes such as fake export claims used to evade excise taxes.

    The rollout faced delays due to procurement and budget concerns, requiring approval from the Department of Economy, Planning and Development (formerly NEDA) and the Department of Finance. A feasibility study and revised terms of reference are currently under review.

  • Philippines Tobacco Trading Still Strong Despite Start of Rainy Season

    Philippines Tobacco Trading Still Strong Despite Start of Rainy Season

    The Philippines’ National Tobacco Administration (NTA) announced that tobacco trading operations across the nation are continuing uninterrupted despite the start of the rainy season in June. Dr. Giovanni Palabay, NTA–La Union Manager, confirmed that flue-cured Virginia tobacco trading centers in Ilocos will remain open until June 30, with centers including Universal Leaf Philippines, Inc. (ULPI), Trans Manila, Inc., and Continental Leaf Tobacco Philippines, Inc. operational.

    “If there is more tobacco available beyond June 30, NTA can coordinate for continued accommodation by the trading centers,” said Palabay. Top prices for high-quality Virginia tobacco have reached P130 ($2.34) per kilo.

    There are 59,242 registered tobacco farmers cultivating over 32,500 hectares nationwide. NTA Administrator and CEO Belinda Sanchez said farmers are expected to earn more this season, as trading prices are currently above the government-set floor prices.

    Burley and native tobacco trading will continue in Ilocos, Cagayan Valley, Central Luzon, and the Cordillera Administrative Region through August 31, with peak prices of P118 ($2.12) for Burley and P175 ($3.15) for native Batek tobacco per kilo.

  • JTI Philippines Sees 23% Growth in Nicotine Pouches

    JTI Philippines Sees 23% Growth in Nicotine Pouches

    According to JTI, Nordic Spirit, the first nicotine pouch brand in the Philippines, is enjoying 23% monthly growth across the country. At a recent briefing in JTI’s office in Stockholm, Sweden, that included visiting journalists from the Philippines, Karin Tan, JTI’s director of reduced-risk products, said the product’s growth has been robust since it was introduced in May 2023.

    “There is actually traction in the market,” Tan said, citing data from major convenience stores such as 7-Eleven and Uncle John’s. “It is all about giving consumers pleasurable choices.”

    In a recent JTI survey of 7,000 consumers, 80% reported a positive experience using nicotine pouches. Consumers in the Philippines cited convenience, taste, and satisfaction in the product, and noted it was convenient to use in a country that contains so many no-smoking areas.

    Against this backdrop, JTI’s Vårgårda facility, located in Västra Götaland County on Sweden’s western coast, is gearing up for increased demand for nicotine pouches. The facility will soon produce Nordic Spirit for the UK, Canada, France, and the Philippines, according to factory lead Serkan Karasulu.