Illicit cigarettes still on the rise

Latest market surveys say that one can buy illicit cigarettes for P3 to P4 per stick. In contrast, the lowest priced legal brand goes for P7 per stick.

- MARY ANN LL. REYES

The choice is obvious. The three-to-four-peso difference seals the deal for many Filipinos. It also makes cigarettes cheaper for minors who are experimenting with and exploring tobacco at their tender age and the poor.

One of every five cigarettes sold in the country today comes from illegal sources, untaxed and unregulated. In just four years, illicit cigarette trade in the Philippines has more than tripled, from 7.4 percent of total volumes in 2021 to 20.9 percent in 2025. This reflects a staggering 182 percent increase in just four years, equivalent to an average annual growth of almost 30 percent.

As a result, smoking prevalence has risen for the first time in 15 years, from 18.5 percent of adults in 2021 to 23.2 percent in 2025, reversing years of progress under the Sin Tax Law.

More alarmingly is the doubling of youth smokers (10 to 19 years old) from 2.3 percent to 4.8 percent over the same period.

Of this number, Mindanao continues to be the hotbed of illicit cigarette products with over 50 percent incidence followed by Luzon (7.4 percent) and Visayas (4.8 percent) as of end-2024.

These developments pose threats to our economy, to public health, to national security and to the livelihood of many Filipinos.

Illegal cigarette trade has caused the government to lose revenue. Collections dropped from P176 billion in 2021 to an estimated P113 billion in 2025. The Bureau of Internal Revenue estimates annual losses of at least P50 billion due to smuggling and illegal manufacturing.