Senator Risa Hontiveros on Tuesday urged government agencies to strengthen the enforcement of existing regulations against the illicit tobacco trade, warning that the smuggling of untaxed cigarettes threatens public health and undermines the country’s Universal Health Care (UHC) program.
Speaking at the launch of the “State of the Illicit Tobacco Trade in the Philippines 2025 Report” by Action for Economic Reforms (AER) and Economics for Health of the Johns Hopkins Bloomberg School of Public Health, Hontiveros said the solution to smuggling lies in implementation, not policy rollbacks like lower tobacco taxes.
“This study affirms that stricter implementation of existing regulations and stronger policies, not tax cuts, are crucial in combating illicit tobacco trade,” said Hontiveros, who chairs the Senate Committee on Health and Demography.
She said lowering taxes, especially when the economy is struggling and the government needs revenue, “may not be a good idea.”
The senator, a key advocate for UHC, said illicit trade allows smugglers to reap huge profits while reducing the revenue needed for medical care anti-smoking campaigns and essential health interventions. Every peso lost to illicit trade, she said, could have funded life-saving measures for Filipinos.
Experts at the report launch echoed Hontiveros’ stance, saying that the problem is one of governance and enforcement, not high taxation.
Jeff Drope, director of Economics for Health at the Johns Hopkins Bloomberg School of Public Health, said the study provides definitive evidence that smuggling is a governance problem, not a tax problem.
Drope noted that declines in revenue seen in some areas are likely a function of taxes “not being high enough, not that they are too high.” He pointed to areas where consistent enforcement by the Bureau of Internal Revenue (BIR) and other agencies has kept illicit trade “manageable.”
Drope recommended scaling up the BIR’s capacity to track and verify excise-tax compliance by enhancing the digitization of the existing system and improving tax stamps.
Tobacco tax expert Roberto Iglesias said the Philippines should act quickly before illicit networks become more entrenched, citing South America where inaction allowed criminal economies to gain political power.
Iglesias urged the government to strengthen diplomatic cooperation with Malaysia and Indonesia to intercept supply from across the border.
Hontiveros committed to studying the report’s recommendations and enacting new policies to strengthen regulations against illicit tobacco.
“If we work together, policy makers civil society researchers and citizens alike, we can curb illicit trade strengthen our health systems and secure a healthier, more equitable future for all Filipinos,” she said.
