The vape you’re using may have entered the Philippines illegally

An estimated 86 percent of vapes sold in the Philippines in 2024 and 2025 were illicit, resulting in around ₱23 billion in lost government revenue, according to a new study by anti-smuggling advocacy group Transnational Alliance to Combat Illicit Trade (TRACIT).

The group’s report, “Assessing ASEAN’s Performance on the Illicit Trade Index,” also found that unrecorded alcohol accounted for approximately 19 percent of total consumption in the country, translating to annual tax losses exceeding ₱4.7 billion.

The findings highlight the fiscal cost of illegal commerce, which allows products to circulate outside the formal regulatory and tax systems while putting legitimate businesses at a disadvantage.

TRACIT classified the Philippines as a moderately high-risk jurisdiction for illicit trade, citing its largely informal economy, extensive coastlines that are difficult to police, persistent corruption risks, and criminal activity involving counterfeit goods, illicit tobacco, pharmaceuticals, and environmental markets.

The study also identified uneven enforcement as a major weakness in the country’s efforts to combat illegal trade, particularly the failure of cases to progress from product seizures to prosecution.

To address these challenges, TRACIT recommended stronger coordination among government agencies through a national strategy against illicit trade, alongside common procedures for customs authorities, police, prosecutors, and regulators.

The group said improving enforcement and prosecution would help the Philippines address illicit markets that continue to deprive the government of potential revenue and undermine legitimate businesses.