2M Filipinos' livelihoods at risk from illicit tobacco trade, says NTA

Illicit tobacco trade threatens the livelihoods of about 2.2 million tobacco farmers, workers, and their families who depend on the industry for income, the National Tobacco Administration (NTA) said on Thursday.

The warning was raised during the Third International Tobacco Summit 2026, where government officials, law enforcement agencies, industry stakeholders, and international experts discussed measures to combat the illegal tobacco trade in the Philippines and across Southeast Asia.

NTA Administrator Belinda Sanchez said the impact of illicit tobacco trade extends beyond lost government revenues, affecting thousands of farming communities and workers involved in tobacco production.

“Illicit tobacco trade threatens the livelihoods of approximately 2.2 million tobacco farmers, workers, and their families who depend on the industry for their income,” Sanchez said.

The Bureau of Internal Revenue (BIR) estimated that the Philippines loses between P40 billion and P52 billion annually due to smuggled and untaxed cigarettes.

Officials said these losses deprive the government of funds that could be used for public services, infrastructure projects, and other development programs.

The Third International Tobacco Summit 2026 was organized by the Department of Agriculture (DA) and the NTA.

Participants at the summit stressed that illicit tobacco trade is no longer merely a taxation issue but also an economic, agricultural, law enforcement, and regional security concern.

They called for stronger coordination among government agencies, including the Bureau of Customs (BOC), Bureau of Internal Revenue (BIR), Philippine National Police (PNP), Department of Justice (DOJ), and local government units (LGUs), to strengthen enforcement efforts and disrupt illegal trade networks.

Experts also highlighted the need for closer cooperation among Southeast Asian countries, noting that illicit tobacco trade costs seven ASEAN economies an estimated $3.69 billion in lost revenues annually.

Summit participants said intensified anti-smuggling operations should be complemented by stronger prosecution efforts to ensure that individuals involved in illicit tobacco trade are held accountable.

The summit also examined emerging technologies and policy reforms aimed at improving supply chain monitoring, including independent track-and-trace systems that could help authorities detect and intercept illicit tobacco products before they reach the market.

Organizers said stronger enforcement, improved regional cooperation, and greater supply chain transparency are crucial to protecting legitimate industries, preserving government revenues, and safeguarding the welfare of millions of tobacco-dependent families. — JMA, GMA News