NTA supports bid vs illicit tobacco trade, vape products

BAGUIO CITY (January 21, 2025) -- The state tobacco industry regulatory body --National Tobacco Administration (NTA) – is supporting unified actions and stronger regulatory measures against the illicit tobacco trade and vape products.

NTA Administrator and CEO Belinda S. Sanchez, in fact, is putting forward a coordinated approach and comprehensive regulatory initiatives that will help mitigate the impact of the illicit tobacco trade ensuring a secure environment for the country’s tobacco industry.

She also believes there is a need to strengthen national policies, enhanced regional cooperation, improve enforcement mechanisms, and an increased public awareness.

Sanchez claimed, the NTA has maximized its regulatory functions to help end illegal cigarette manufacturing and trading.

The NTA has conducted various communication campaign activities such as distribution of posters, webinars, fora, and an audio-video-presentation over social media and its radio program, to increase awareness of the ill-effects of tobacco smuggling.

“The illicit tobacco trade is a significant challenge, adversely impacting government revenues, public health, national security, and the livelihoods of the Filipino farmers,” the NTA chief said.

At present, there are 2.2 million Filipinos who are financially dependent on tobacco including more than 430,000 farmers, farm workers, and their family members.

“Illicit tobacco trade in CL, illegal cigarettes in Mindanao”

According to the NTA, there is a high prevalence of illicit tobacco trade in Central Luzon and the rampant proliferation of illegal cigarettes in Mindanao.  Many of the cigarettes that were previously confiscated were smuggled, illicit whites with no tax stamps, no Graphic Health Warnings, and unregistered brands, Sanchez bared.

The NTA also accounts that the illicit tobacco trade has caused a gradual decrease in revenue collection of the national government, incurring up to P100 billion annual loses as estimated by the Bureau of Internal Revenue (BIR).

Based on the estimates of the 2023 Euromonitor Report, the rising trend of the illicit tobacco trade and vape products contributed to the decline of legal tobacco products by 35.2% from Calendar Years (CYs) 2019 to 2023.

Likewise, the national government was deprived of the collection of excise tax in the amount of P109 billion as compared to the projected collection of P244 billion for CY 2023.