Two farmer groups, composed of 50,000 members, have jointly called on the national government to strictly enforce the Vaporized Nicotine and Non-Nicotine Products Regulation Act as the proliferation of illegal and disposable vapes threatens their livelihood.
Philippine Tobacco Growers Association's (PTGA) Ka Turning Distor said that the proliferation of illicit cigarettes has led to a decrease in demand for locally produced tobacco leaves among domestic manufacturers.
"Unlike heated tobacco sticks, vapes do not contain dried tobacco leaves and have no direct benefit to tobacco farmers. Illegal vapes only benefit smugglers and crooked retailers since they don't even pay taxes," Distor said.
"We need the help of the government to stop this 'vapedemic' and save the local tobacco industry," he added.
The National Federation of Tobacco Farmers Association and Cooperatives (NAFTAC) Chairman Bernard Vicente also lamented that the law, which was supported by farmers, is being abused by businesses selling smuggled products.
"NAFTAC, PTGA, and other farmer's groups supported the Vape Bill to regulate cigarette alternatives such as vapes and heated tobacco products and promote the utilization of local tobacco. Unfortunately, this new law is now being abused by unscrupulous businessmen who are blatantly smuggling and distributing illegal vapes," Vicente said.
Vicente noted that illegal vapes are killing the farmers' livelihoods as evident in the drop in demand for locally produced tobacco leaf as consumers switch to vapes from conventional cigarettes.
Another is the diminishing support from local government units (LGUs) in tobacco-producing regions that receive a share of tobacco excise taxes, he added.
Based on the latest data from the National Tobacco Administration (NTA), there are currently 2.2 million Filipinos who are financially dependent on tobacco including more than 430,000 farmers, farm workers, and their family members.
Tobacco is a valuable interim crop and contributes to the country's food security since it gives extra income to farmers who also plant rice, corn, and other primary crops.
LGUs provide direct support to farmers such as farm-to-market roads, fertilizers, farm machines, training, etc. by utilizing excise taxes from tobacco.
The Bureau of Customs (BOC) recently seized P1.6 billion worth of "Flava" vape pods in Valenzuela City in late 2023 allegedly due to the illegal importation of said products.
This triggered two hearings by the Ways and Means Committee of the House of Representatives chaired by Rep. Joey Salceda.
During the said hearings, it was found that Flava Corp. was registered as a manufacturer of vape products, along with the Bureau of Internal Revenue (BIR) but upon investigation, it was revealed that their manufacturing address is just a two-story residential house.
Under the Republic Act No. 11346, about 40 percent of tobacco excise taxes are allocated to Philhealth and 10 percent to the DOH-Health Facilities Enhancement Program.
The remainder goes to the national budget and tobacco-producing provinces to support tobacco farmers.
Last year, the BIR reported a 16 percent drop in excise tax collections to P135 billion, well below the P170 billion target for the year.
In 2022, tobacco excise taxes in the Philippines experienced a significant decline, falling from P176 billion in 2021 to P160 billion.
The drop in excise tax collections is attributed to the rise in the smuggling and distribution of illegal cigarettes and vapes.
