In a recent crackdown, authorities in Leon B. Postigo, Zamboanga del Norte, seized smuggled cigarettes valued at PHP7.79 million on January 14, 2025. This seizure underscores a broader issue highlighted by the Senate Committee on Ways and Means, which has identified illicit trade as a significant contributor to the increased smoking rates and diminished tax revenues in the Philippines. The committee’s findings were discussed during a public hearing on January 22, 2025.
Data from the Food and Nutrition Research Institute (FNRI) reveals a troubling trend: smoking prevalence in the country escalated from 14% in 2021 to 18% in 2023. Senator Sherwin Gatchalian, who leads the committee, expressed frustration over the reversal of nearly six years of progress in reducing smoking rates, which have now returned to previous levels within just two years.
The financial impact is equally stark, with tobacco excise tax revenues dropping from PHP176 billion in 2021 to PHP134 billion in 2023. Gatchalian pointed to the rise in illicit trade as the primary cause, noting that illegal cigarettes now constitute 16% of the market, up from 5% in 2021 according to Kantar’s data.
The senator emphasized that the proliferation of untaxed cigarettes not only undermines public health efforts but also leads to significant revenue losses. He stressed the urgency of addressing these illicit activities to safeguard both public health and government finances.
Tobacco is one of eight categories subject to excise taxes in the Philippines, which also include alcohol, vapor products, petroleum, automobiles, non-essential goods and services, sugar-sweetened beverages, and mineral products. Gatchalian called for more stringent regulations to halt the decline in smoking prevalence and tax collection.
The FNRI’s 2023 National Nutrition Survey further detailed the demographic impact of smoking, showing a sharp rise in smoking among Filipino adolescents aged 10 to 19, from 2.3% in 2021 to 4.8% in 2023. The survey, which included 26,301 adolescents, indicated that smoking rates increase significantly with age, with only 0.3% of children aged 10 to 12 smoking, compared to 13.8% of those aged 18 to 19.
The data also highlighted disparities in smoking habits, with higher rates among males, rural residents, and those from lower-income households. Male adolescents had a smoking rate of 8.4%, significantly higher than the 1.0% among females. Additionally, the survey noted an increase in electronic cigarette use among adolescents, rising to 39.9% in 2023 from 7.5% in 2021 among current smokers. Despite this, manufactured cigarettes remain the most popular choice, used by 65.4% of adolescent smokers.