Illegal tobacco manufacturing and selling do not just break the law; they take away hospitals, health care, and life-saving services from ordinary Filipinos, the Department of the Interior and Local Government (DILG) said Saturday.

According to the DILG, more than P1 billion in taxes meant to fund public health services has been lost because of illegal cigarette operations across the country. This money should have gone to government hospitals, health programs, and medical services that millions of Filipinos rely on.

During a raid of an illegal cigarette factory in Barangay Panipuan, Mexico, Pampanga, DILG Secretary Jonvic Remulla said every illegal cigarette sold weakens the country’s health care system.

Lucrative crime

“Every illegal cigarette reduces the funds meant for the people’s healthcare,” Remulla said.

Data from the Philippine National Police showed that in just one operation in December 2025 and eight raids in January 2026, authorities seized P1.78 billion worth of illegal cigarettes.

These few operations alone have already deprived the government of more than P1 billion in excise taxes, duties, and Value-Added Tax.

These are funds that should have gone to hospitals and health services for Filipinos.

Under Republic Act 10351, or the Sin Tax Reform Act of 2012, taxes collected from tobacco products are meant to support public health. These funds help pay for government hospitals, health facilities, and programs that allow Filipinos to receive medical care even if they cannot afford it.