NTA to recalibrate marketing plan on local tobacco products
Art Dumlao — December 2, 2024
NTA to recalibrate marketing plan on local tobacco products
BAGUIO CITY (November 29, 2024) -- Agriculture Undersecretary Deogracias Victor B. Savellano is pushing to recalibrate the National Tobacco Administration’s (NTA) marketing plan to increase the demand for locally–produced tobacco, in the local and international markets.
Savellano, who is the DA oversight official for the NTA, presided over the recent regular meeting of the tobacco industry regulatory body’s Governing Board with Administrator and CEO Belinda S. Sanchez to tackle the status of the marketing updates of the locally- produced tobacco.
The initiative is in line with the agenda of DA Secretary Francisco P. Tiu Laurel, Jr. on expanding market access of crops supporting the economic agenda of President Ferdinand R. Marcos, Jr. protecting the purchasing power of every Filipino family to ensure food security.
Atty. Rohbert Ambros, the manager of the Regulation Department, reported that for Calendar Year 2023, the country had exported a total of 20, 748, 023.15 kilograms of unmanufactured tobacco products to different countries abroad.
Unmanufactured tobacco products refer to the processed tobacco leaves for use in the manufacturing of cigarettes and other tobacco products.
The locally–produced tobacco type with the highest volume of exports was Native tobacco with 9,218,053.80 kilograms followed by Virginia tobacco with 4,660, 910 kilograms, Burley tobacco with 2,028,200 kilograms, and 4,840,859.35 kilograms from other tobacco products such as scrap, stems, expanded sample, cast leaf, cut rag, seeds, and dust.
The top five countries exporting destination of the unmanufactured Philippine tobacco are: The Dominican Republic, Belgium, Indonesia, the Philippines (referring to the foreign tobacco manufacturers based in the country), and the USA.
Meanwhile, the top five countries importing origin of unmanufactured tobacco are: Dominican Republic, Belgium, Indonesia, the Philippines (also referring to the foreign tobacco manufacturers based in the country), and the USA.
For 2023, the volume of imported unmanufactured tobacco to the country was 50, 844, 034.34 kilograms with the following distribution per tobacco type: Virginia tobacco - 22,072,425.80 kilograms; Burley tobacco – 7,568,643 kilograms; Native tobacco – 64,109.80 kilograms; and other products – 18,311,443.64 kilograms.
However, it was reported the comparable quality of all types of locally–produced tobacco to other countries all over the world. “Considering the great potential of the locally- produced tobacco in the world market, I’m urging the NTA marketing research unit to explore more tobacco export outlets and for possible increase in the contract volume of tobacco exports maximizing the existing Department of Agriculture’s international relations,” said Usec. Savellano. “The hike on the volume of tobacco exports will increase the demand for Philippine tobacco bringing more revenues to the government’s coffer and more income to the tobacco farmers,” he added.
The country’s tobacco industry is one of the strongest pillars of the country’s economy with tobacco excise tax revenue comprising 1% of the Gross Domestic Product (GDP) and 6% of the over-all annual tax revenue collections. For CY 2023, the BIR collected P132 billion of excise tax on locally- manufactured Virginia–type cigarettes.
Fifty – two percent or P68.37 billion of the tobacco excise tax collected was allocated for Universal Health Care and Medical Assistance and Health Facilities. Sixteen percent or P21 billion is earmarked for the development of the tobacco industry pursuant to RA Nos. 7171 and 8240 as amended by RA 10351.
Twenty – five percent or P32 billion to the national government/IRA/BIR. The remaining 7% or P9.7 billion was credited to the Special Account under the General Fund of the NTA under RA 4155.
