The illicit cigarette trade remains a major national concern, significantly impacting farmers’ livelihoods and the economy.
A study titled “Smuggling of Cigarettes and Other Tobacco Products and Its Effects on Tobacco Producers in the Philippines” underscored the importance of collaboration with agencies including the National Tobacco Administration and the Department of Trade and Industry and strict enforcement of anti-smuggling laws as crucial measures in identifying opportunities for tobacco-based industries and upholding industry integrity, ultimately bolstering farmers’ incomes, and safeguarding against illicit...
A study published by the University of Asia and the Pacific, “Illicit Cigarette Trade in the Philippines: Economic and Social Impacts of Weak Regulatory Enforcement,” also reported that illicit trade from 2018 to 2022 caused the GDP to decline by P378.9 billion, leading to a drop of about P592.1 billion in domestic output.
The illicit trade in tobacco products increases the local supply of cheap tobacco entering the market without tax.