Illicit cigarettes and vapes contain more harmful substances than legal products because they are manufactured without specific standards and beyond government regulation, public health experts said.
“Illicit tobacco products are far more dangerous than legal ones because they are not manufactured under any form of safety oversight. Filipinos are being exposed to unknown and potentially deadly substances,” said Dr. Lorenzo Mata, president of Quit for Good, a health advocacy group promoting tobacco harm reduction.
Findings from several international studies highlight that illicit tobacco products contain significantly higher levels of harmful substances. A study published by the U.S. Centers for Disease Control and Prevention (CDC) showed that counterfeit cigarettes contain elevated amounts of cadmium, lead, and thallium, metals linked to cancer, kidney damage and other serious illnesses.
Experts also said the continued spread of illicit cigarettes and vaping products is undermining critical public health efforts while depriving the government of billions in tax revenues, according to experts and consumer groups.
A study published in the Canadian Medical Association Journal found that access to untaxed or contraband cigarettes undermines smokers’ attempts to quit by providing a cheaper alternative and increasing the likelihood of relapse or continuous use.
The same trend has been observed locally, where many illicit cigarettes are sold for less than half the price of legal brands.
“Cheap illicit cigarettes undermine government strategies like sin taxes, which were designed to curb smoking. If smokers can still access low-cost alternatives, the public health objective is lost,” said Adolph Ilas, chairman of Consumer Choice Philippines.
The unregulated tobacco and vapes are also undermining Philippine laws designed to protect the youth and shore up government revenues, they said.
Illicit cigarettes and vapes, sold below the prices of legal products, are ending up in the hands of Filipino minors, according to public health experts.
Philippine laws prohibit the sale of tobacco to minors, but illicit cigarette and vape traders circumvent these regulations by operating through informal channels such as street vendors and online sellers.
This not only deprives the government of billions in much-needed revenue but also worsens the public health crisis by exposing consumers to cheaper products that are highly toxic and unregulated, experts said.
Nueva Ecija Representative Mikaela Suansing, in a congressional hearing for House Bill 11360, cited government data showing that adult smoking prevalence rose to 23.2 percent in 2023 from 18.5 percent in 2021, after nearly a decade of stagnation.
The increase was attributed to the availability of cheaper, illicit tobacco products that have flooded the market in recent years.
The illicit vape trade has also emerged as a major revenue drain for the government. Data from the Bureau of Internal Revenue (BIR) cited by the OSSTG Ways and Means Committee project that misdeclaration and smuggling of vape products will cause a 62.52 billion pesos ($1.08 billion) shortfall in excise tax collections this year. In early 2025 alone, more than 5 billion pesos worth of illicit vapes were seized.
Suansing also said that while the Sin Tax Law initially led to higher revenues and lower smoking rates, excise tax collections have been steadily declining since 2021. She pointed out that excise tax revenues dropped to P160 billion in 2022 from P176 billion in 2021, and further to P135 billion in 2023.
The trend continued into 2024, with the BIR reporting collections falling further to P134 billion from P174 billion in 2021.
Senate Ways and Means Committee Chairman Sherwin Gatchalian revealed during a hearing that in 2024, tax leakages from illicit cigarette trade reached P342 million, while those from illegal vapor products amounted to P64 million/
In response, the BIR has ramped up enforcement activities targeting illicit cigarettes and vapor products, conducting 141 operations against illegal vape sales in 2023.
The Bureau of Customs (BOC) also intensified its anti-smuggling initiatives. BOC assistant commissioner Vincent Maronilla said the agency seized 318 shipments of illicit products in 2024, with a total estimated value of P9.19 billion, or more than five times the P1.71 billion worth of seizures from 131 operations in 2021.
Globally, estimates show that 14 percent to 15 percent of all tobacco products consumed annually are illicit, accounting for nearly 500 billion cigarettes. These products are typically smuggled and manufactured without compliance to regulatory standards, making them cheaper and more accessible to low-income consumers and the youth.
The International Chamber of Commerce (ICC) Counterfeit Intelligence Bureau likewise reported that seized counterfeit cigarettes contained up to five times more cadmium, six times more lead, 160 percent more tar and 133 percent more carbon monoxide compared to legal brands. Some samples were even found to contain unsanitary contaminants such as insect eggs, mold and human feces.