NTA: Coordinated, unified actions to mitigate impact of illicit tobacco trade

The National Tobacco Administration (NTA) is calling for unified actions and coordinated approach among the government and the tobacco industry stakeholders to combat illicit trade of tobacco and vape products.

In a statement released Wednesday, NTA Administrator and CEO Belinda Sanchez said that “a coordinated approach and comprehensive regulatory initiatives will help mitigate the impact of illicit trade ensuring a secure environment for the tobacco industry.”

Sanchez said that strengthened national policies, enhanced regional cooperation, improved enforcement mechanisms, and increased public awareness are needed against illicit tobacco trade.

“The illicit tobacco trade is a significant challenge, adversely impacting government revenues, public health, national security, and the livelihoods of the Filipino farmers,” she said.

According to NTA data, there are currently 2.2 million Filipinos who are financially dependent on tobacco, which include more than 430,000 farmers, farm workers, and their family members.

Based on NTA’s latest monitoring, high prevalence of illicit tobacco trade was observed in Central Luzon as well as the proliferation of illegal cigarettes in Mindanao.

Many of the cigarettes that were previously confiscated were smuggled, illicit whites with no tax stamps, no Graphic Health Warnings, and unregistered brands, according to the tobacco industry regulator.

Based on the Bureau of Internal Revenue’s (BIR) estimates, the occurrence of illicit tobacco trade has caused a gradual decrease in revenue collection by the national government, incurring a loss of up to P100 billion annually.

In particular, the national government was deprived of the collection of excise tax in the amount of P109 billion as compared to the projected collection of P244 billion for 2023.

The tobacco industry regulator has also seen a decline in  legal tobacco products by 35.2% from calendar years 2019 to 2023 due to illicit tobacco trade and vape products. — Ted Cordero/RSJ, GMA Integrated News