The National Tobacco Authority (NTA) underscored the need to strengthen both national and regional policies and enforcement to combat illicit trade.
NTA administrator Belinda Sanchez called for a comprehensive approach to address the problem.
“It requires a whole-of-government approach and multi-faceted strategies that include strengthening national policies, enhancing regional cooperation, improving enforcement mechanisms, and increasing public awareness,” she said.
Illicit tobacco trade has had a significant negative impact on the Philippine tobacco industry, adversely affecting government revenue, public health, national security and the livelihood of Filipino tobacco farmers, the NTA said.
Data from the NTA showed there are 2.2 million Filipinos who are financially dependent on tobacco including more than 430,000 farmers, farm workers and their family members.
The proliferation of illegal tobacco sales in the local market led to a decline in government revenue, limiting the resources available for essential public services.
According to the Bureau of Internal Revenue (BIR), the national government incurred revenue losses of up to P100 billion annually due to illicit tobacco trade.
The revenue lost to illicit tobacco trade promotes organized crime, including money laundering and trafficking in humans, weapons, and illegal drugs, posing a serious threat to national security, the NTA said.
The NTA said it took significant steps to address the issue including organizing the first international tobacco summit in August 2023 to focus on the campaign against illicit tobacco trade and smuggling.
The agency will hold the second international tobacco summit later this year. The summit will focus on the importance of the local tobacco industry, its opportunities and challenges, strategies for further development and the ongoing government efforts to combat illicit tobacco trade.