Illegal cigarettes cost PH ₱141B in lost government revenue

JTI Philippines calls for harmonized ASEAN rules as illicit tobacco trade grows, while Philippine agencies step up efforts to seize and destroy illegal cigarette products.

The Philippines lost an estimated ₱141 billion in government revenues to illicit tobacco over the past two years, with one in every four cigarettes sold estimated to be illicit, according to a Euromonitor study cited by Japan Tobacco International (JTI), a global tobacco and nicotine products company.

The problem is also spreading across Southeast Asia. Across six ASEAN markets, illicit tobacco cost governments an estimated $13.1 billion, or around ₱739 billion, in 2024 and 2025. The Philippines and Malaysia each accounted for about $2.5 billion of the losses.

JTI Philippines is pushing ASEAN countries to harmonize export rules, strengthen customs checks and share information to make it harder for smuggling networks to exploit differences between markets.

The urgency is already playing out locally. On Thursday, the BIR and Bureau of Customs destroyed 170,052 packs of illicit cigarettes, raw materials and two production machines seized in Cebu, involving around ₱240 million in unpaid taxes and penalties.

The agencies also confiscated ₱1.7 billion worth of illicit products in June and July alone, according to the BIR.

Illicit tobacco can undercut legitimate manufacturers and retailers while cutting into government revenues that could support public programs. JTI also cited UNODC findings that tobacco smuggling routes are used for drug, weapons and human trafficking.

EDITOR’S NOTE: Smoking has been proven to cause a range of serious health conditions, including heart disease, stroke, and lung cancer, and can ultimately lead to premature death. If you don’t smoke, don’t start. If you want to quit, consider seeking guidance from a health professional or support from a smoking-cessation group. You don’t have to do it alone.

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