The Philippine Tobacco Institute (PTI) on Tuesday backed several proposed measures in the Senate that would help curb illicit tobacco trade.
In a statement, PTI expressed support to the strengthening coordination between law enforcement agencies and local government units; imposing a unified tax rate on all vapor products; mobilizing the Anti-Money Laundering Council; convening the Anti-Agricultural Economic Sabotage Council; enhancing enforcement against e-marketplaces; and improving prosecution and conviction rates by the Bureau of Customs and the Bureau of Internal Revenue.
The PTI cited the need to pass measures, noting that for the past year, there had been an unprecedented rise in illicit tobacco products in the country.
Citing latest industry figures, the PTI said illicit tobacco incidence reached 18.2 percent by the end of 2024.
PTI said data from a global research firm also revealed that the share of illicit cigarettes surged from 5.4 percent in 2020 to 18.2 percent in 2024.
According to PTI, in Mindanao alone, illicit incidence surged to 50 percent, topped by the province of Lanao del Sur with the highest incidence at 94 percent.
Central Luzon remains the hotbed of illicit cigarettes in Luzon, led by Bataan at 63 percent, Pampanga at 20.2 percent, and Tarlac at 17.5 percent.
“While we commend the efforts of the Bureau of Customs, Bureau of Internal Revenue, Philippine National Police, and the Department of Trade and Industry, the sheer scale and geographic spread of illegal tobacco and vape products continues unabated. Today, one in every five cigarettes sold in the country comes from illicit sources,” said PTI President Jericho Nograles.
PTI, citing data from the Department of Finance, also said annual revenue losses due to illicit trade alone amount to PHP52 billion.
The surge in illicit activity has also caused a steep decline in legal, tax-paid tobacco volumes—from 69 billion sticks in 2020 to just 43.8 billion sticks in 2024.
“The PTI and its members stand with the government in seeking urgent and sustainable solutions to this growing threat. If we do not act decisively now, the damage to our fiscal health, public welfare, and the rule of law may soon be beyond repair,” Nograles said. (PNA)
