The National Tobacco Administration (NTA) called for unified action and stronger regulatory measures to address the growing illicit trade in tobacco and vape products.
NTA administrator and chief executive Belinda Sanchez said a coordinated approach and robust regulatory initiatives are crucial to mitigating the impact of illicit trade and ensuring a secure environment for the tobacco industry.
“The illicit tobacco trade is a significant challenge, adversely impacting government revenues, public health, national security, and the livelihoods of the Filipino farmers,” she said.
Sanchez stressed the need for enhanced national policies, improved regional cooperation, strengthened enforcement mechanisms, and greater public awareness to combat illegal tobacco trade.
The NTA, as a key regulatory agency, maximized its efforts to curtail illegal cigarette manufacturing and trade in the Philippines.
It launched a variety of communication campaigns, including the distribution of posters, webinars, forums, social media presentations, and a radio program to raise awareness about the harmful effects of tobacco smuggling.
Around 2.2 million Filipinos are financially-dependent on the tobacco industry, including more than 430,000 farmers, farm workers, and their families.
Recent NTA monitoring revealed a high incidence of illicit tobacco trade in Central Luzon and widespread illegal cigarette distribution in Mindanao.
Many of the seized cigarettes were found to be smuggled “illicit whites,” lacking tax stamps, graphic health warnings, and registration.
The illicit trade has also led to a significant decline in government revenue, with the Bureau of Internal Revenue (BIR) estimating losses of up to P100 billion annually.
According to the 2023 Euromonitor Report, the surge in illicit tobacco and vape products has contributed to a 35.2 percent drop in legal tobacco sales between 2019 and 2023, resulting in a shortfall of P109 billion in excise tax revenue.