Philippines loses P30B yearly to illegal tobacco trade, Remulla says

MEXICO, Pampanga — The Philippine government is losing an estimated P30 billion annually due to the illegal sale and manufacturing of tobacco products, Juanito Victor Remulla said Thursday.

“Ang excise tax na ito ay para sana sa healthcare ng Pinas, para sa DOH. Kaya tayo nagkakashort sa excise tax dahil sa illegal manufacturing ng tobacco. Ito po ay inaangkat papunta dito o ginagawa dito,” Remulla said during a joint press briefing following a tobacco factory raid in Barangay Panipuan here.

The joint task force, composed of the Philippine National Police, Bureau of Internal Revenue, and Bureau of Customs, has been conducting operations against illegal tobacco manufacturing since December, starting in Mabini, Batangas; Malabon; and Mexico, Pampanga.

“All items we have confiscated since December – including products and machinery – are now worth an estimated ₱10 billion in total. Thursday’s operation in Brgy. Panipuan is just one of many enforcement activities we will conduct against the illegal manufacturing and sale of tobacco products. Through the joint efforts of the PNP, BIR, and BOC, we will do everything possible to completely put a stop to this illegal trade,” Remulla said.

Authorities confiscated illegal cigarette brands including “Two Moon,” Mighty, H&P, Playboy, and Carnival. During Thursday’s raid, machines caught in active operation were seized, with each capable of producing up to ₱150 million worth of cigarettes daily.

Ariel F. Nepomuceno said the brands seized were the same ones recently apprehended in a separate enforcement operation in Batangas, indicating a possible link in the distribution and supply chain of illicit cigarettes now under investigation.

Authorities said the facility had been operating for about a month starting Jan. 1. Six Chinese nationals were arrested for allegedly running the site. The suspects entered the Philippines in March last year and are estimated to have distributed P4.5 billion worth of illegal cigarettes during that period.

On-site seizures included tons of tobacco leaves, fake tax stamps, and other manufacturing paraphernalia.

Remulla also clarified that President Ferdinand Marcos Jr. is not protecting anyone involved in the illegal tobacco trade.

“Walang prinoprotektahan ang Pangulong Marcos na kahit sigurong dayuhan na gumagawa ng illegal,” he said.

The operation also uncovered alleged human trafficking, with around 65 workers reportedly kept in inhumane conditions and deprived of their promised wages.

“Kasama sa mga kasong ihahain ang human trafficking at Anti-Agricultural Smuggling Act – mga non-billable offense ito. Asahan nyo na tuloy-tuloy… hindi titigil ang joint task force hanggang sa masibol lahat ng illegal na gawain lalo na sa tobacco sector,” Remulla said.