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BUSINESS

Agencies unite against illicit tobacco trade

Mico Virata·13 June 2026, 1:37 pm·1 MIN READ

Agencies unite against illicit tobacco trade

Another win in the war against illicit trade was chalked up after the Bureau of Internal Revenue simultaneously raided four large-scale manufacturers of illicit cigarettes in Clark, Pampanga last 12 September. A total of P8.06 trillion in tax liability has been initially computed.

photographs courtesy of bir

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Government regulators and law enforcement agencies are intensifying efforts against illicit tobacco and vape products as the Philippines prepares to host an international summit aimed at tackling a trade that has cost the government billions of pesos in lost revenue and threatened the livelihoods of millions of tobacco-dependent Filipinos.

The Department of Agriculture and the National Tobacco Administration will convene the Third International Tobacco Summit on June 18 in Pasig City, bringing together policymakers, enforcement agencies, industry leaders and international experts to strengthen the fight against illegal tobacco trade.

The summit comes amid growing concern over the scale of illicit tobacco products in the country. A study by the European Union–ASEAN Business Council and Euromonitor International estimated that the Philippines lost P141 billion in government revenues from 2024 to 2025 due to illegal tobacco and vape products.

Of the total, P118.1 billion was attributed to illicit cigarettes, while P22.9 billion came from illegal e-vapor products. The report also found that 85.6 percent of e-vapes sold in the Philippines were illicit, the highest level among Southeast Asian countries where vaping is legal.

National Tobacco Administration Administrator Belinda Sanchez said the issue extends beyond lost taxes and directly affects tobacco-growing communities.

“Illicit tobacco trade is not only stealing revenues from government—it is stealing livelihoods, opportunities, and the future of our tobacco-growing communities. This summit is about uniting government and stakeholders behind one clear message: We will protect legitimate farmers, defend lawful trade, and hold illicit operators accountable,” Sanchez said.

The government said illegal tobacco products weaken demand for legitimate goods by offering cheaper untaxed alternatives, reducing earnings across the legal tobacco value chain and affecting an estimated 2.2 million tobacco farmers, workers, retailers and their families.

A ceremonial signing of a joint commitment among government agencies will highlight the summit, with officials pledging closer coordination in enforcement, regulation and prosecution efforts.

The event will also focus on strengthening regional cooperation within ASEAN to improve intelligence sharing, policy coordination and enforcement against cross-border smuggling operations.

Among those expected to participate in a high-level panel discussion are Interior Secretary Jonvic Remulla, Philippine National Police chief Gen. Jose Melencio Nartatez Jr., Bureau of Customs Commissioner Ariel Nepomuceno and Prosecutor General Richard Anthony Fadullon, who will discuss efforts to improve enforcement actions and secure convictions against illicit trade offenders.

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