Rep. Miro Quimbo, Chair of the House Committee on Ways and Means, led the probe into the illicit tobacco trade.

The investigation, under House Resolution No. 636, exposed the alarming rise in contraband cigarettes, which is costing the government billions in lost revenue and endangering public health, with young people especially at risk.

Quimbo filed House Resolution 636 following the interception of 32 trucks loaded with contraband cigarettes at the start of the year. Coordinated operations by the Bureau of Customs and the Highway Patrol Group of the Philippine National Police in Batangas and Malabon yielded products valued at approximately P2.6 billion.

This would have amounted to nearly P1 billion in excise tax losses had the contraband entered the market.

“Contraband cigarettes are not a new problem. However, what is new and deeply alarming is the scale, frequency, and brazenness of the situation today. It has become a major criminal enterprise akin to POGOs: malawak na ang operasyon mula Luzon hanggang Mindanao, may mga banyagang kasangkot, at mga Pilipinong backer,” Quimbo said.

Reports from various regions confirm that the illicit tobacco trade now operates as a three-pronged menace through direct smuggling, transshipment, and illegal manufacturing. Quimbo said it relies on coordinated cross-border supply chains, covert production facilities, and networks that thrive on protection and facilitation.

The Marikina City solon also highlighted the grave public health implications. Citing data from the Food and Nutrition Research Institute (FNRI) of the Department of Science and Technology (DOST), he noted that youth smoking prevalence nearly doubled from 2.3 percent in 2021 to 4.8 percent in 2023, even as excise tax collections from cigarettes continued to decline year on year.

“Habang bumababa ang pagkolekta ng buwis sa sigarilyo, parami nang parami naman ang nagsisigarilyo taon-taon. Ito ay dahil mas maraming tao ang naninigarilyo ng contraband cigarettes na hindi nagbabayad ng buwis. Katulad ng kanser sa baga dulot ng pagsisigarilyo, kapag hindi natin gagamutin ang kanser sa illicit cigarette, kakalat at lalala ang problemang ito,” Quimbo added.

He said two packs of legitimate tobacco products amount to roughly P400. But for the same amount, one ream of contraband cigarettes can now be easily bought, making it more accessible to the youth and the poor.

From December 2025 to February 2026, seven operations by law enforcement agencies seized 782.1 million contraband cigarette sticks, amounting to P1.84 billion in foregone revenues had they reached the market.

Quimbo emphasized that cheap, contraband cigarettes are not just a tax problem, but a health crisis. Because of cheap contraband, more people are smoking and getting sick. Tax revenues fall, and funding for PhilHealth’s health services is reduced.

The solon said the inquiry aims not to assign blame but to identify where the system is breaking down. The House of Representatives will review whether current enforcement tools are sufficient, whether penalties deter large-scale operators, and whether coordination among agencies is effective given the increasingly complex nature of the threat.

He emphasized the need to consolidate government efforts, saying that current initiatives are scattered and ineffective.

“Sangkot ang mga banyaga at may mga Pilipinong protektor. Walang buwis, mapaminsala sa kalusugan, at pugad ng kriminalidad. Iyan ang kalakaran ng mura at kontrabandong sigarilyo — ito na ngayon ang bagong POGO,” Quimbo said.