Illegal tobacco trade robs Filipinos of hospitals, health care—DILG

Illegal tobacco manufacturing and selling do not only violate the law—they deprive Filipinos of hospitals, health care, and life-saving services, the Department of the Interior and Local Government (DILG) said Saturday.

According to the DILG, more than P1 billion in taxes intended to fund public health services has been lost due to illegal cigarette operations across the country. These funds should have gone to government hospitals, health programs, and medical services relied upon by millions of Filipinos.

During a raid on 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.

“Ang bawat sigarilyong iligal ay binabawasan ang pera para sa kalusugan ng mga mamamayan,” 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 operations alone deprived the government of more than P1 billion in excise taxes, duties, and value-added tax (VAT)—funds meant for hospitals and health services.

Under Republic Act No. 10351, or the Sin Tax Reform Act of 2012, taxes collected from tobacco products are earmarked to support public health, including government hospitals, health facilities, and programs that allow Filipinos to receive medical care even if they cannot afford it.

The same amount, the DILG said, could have strengthened specialty hospitals such as the Lung Center of the Philippines, National Kidney and Transplant Institute, Philippine Children’s Medical Center, and Philippine Heart Center—institutions that treat patients with serious and life-threatening illnesses.

When these funds are lost, the impact is felt by ordinary Filipinos through fewer hospital beds, overcrowded wards, delayed treatment, and limited access to essential medical care.

Remulla stressed that it is everyday Filipinos who suffer most from illegal tobacco operations.

“Ang dapat sana ay napunta sa kalusugan ng mga Pilipino ay ninanakaw ng mga taong katulad nito,” he said, underscoring that illegal tobacco traders ultimately steal from the people’s right to accessible and reliable health care.