Business and agricultural groups have lauded the government for intensifying its crackdown on illegal tobacco manufacturing and smuggling, following a series of raids that uncovered massive underground operations in Central Luzon.
The Federation of Free Farmers (FFF), the Federation of Philippine Industries (FPI) and the British Chamber of Commerce of the Philippines (BCCP) said the enforcement actions led by Department of the Interior and Local Government Secretary Jonvic Remulla demonstrate a firm commitment to protecting legitimate enterprises and public revenue.
This follows recent operations that resulted in the closure of multiple illegal cigarette factories in Pampanga. Authorities reported seizing equipment and raw materials valued at approximately P400 million. Remulla noted that each facility had the capacity to produce up to P160 million worth of cigarettes daily.
Remulla said authorities have stepped up operations against syndicates suspected of operating in Central Luzon and other regions. He revealed that illegal tobacco operations deprived the government of an estimated P30 billion in lost excise taxes in 2025 alone.
According to the FFF, stronger enforcement is vital to ensuring that Filipino tobacco farmers are shielded from unfair competition.
“We commend the DILG and other law enforcement agencies for pursuing a stronger campaign against illicit tobacco operations. Illegal cigarette production and smuggling undermine the legal tobacco supply chain and ultimately hurt thousands of Filipino farmers whose livelihoods depend on a stable and legitimate market,” FFF chairman Leonardo Montemayor said.
The FPI also expressed support for the raids, noting that illicit trade poses a serious threat to manufacturing standards and government income.
“Illicit tobacco products distort the market and disadvantage legitimate companies that comply with taxes, regulations, and product standards. The government’s firm action against illegal factories and smuggling syndicates is an important step toward restoring fairness in the market and protecting lawful enterprises,” FPI chairman Emeritus Jesus Arranza said.
The BCCP said the crackdown helps maintain investor confidence by ensuring a level playing field.
“We strongly welcome the government’s decisive actions against illicit tobacco operations,” BCCP executive vice chairman Chris Nelson said.
Remulla disclosed that illegal tobacco operations may be receiving protection from individuals within the government and that certain politicians allegedly connected to the activities had reached out to him during the investigation.
“Nag-reach out na. Alam na agad nila… Through their friends, lumapit na naman sa akin. Kakausapin daw ako pero ayaw ko pa kausapin,” Remulla said, referring to politicians allegedly associated with the production.
Investigators believe the facilities, some of which previously held legitimate business permits, are connected to a broader syndicate. Remulla indicated that operations likely began in January 2026 but ceased after the first factory in Mexico, Pampanga, was raided on January 29.
Remulla earlier said the government is committed to dismantling the entire supply chain supporting illegal tobacco operations.
“You fill in the blanks… How to provide the exact details para accountable sila sa batas,” he said, referring to the ongoing investigative efforts required to ensure accountability for those involved.
