House inquiry on rising incidence of large-scale tobacco smuggling sought

A congressional inquiry on the rising incidence of large-scale tobacco smuggling and its impact on public health and government revenues has been sought in the House of Representatives.

House ways and means panel chairperson Marikina Rep. Romero Quimbo made the proposal under House Bill 636, citing the seizure of 32 trucks of allegedly smuggled cigarettes valued at P2.6 billion on January 1, 2026.

The P2.6 billion worth of allegedly smuggled cigarettes were intercepted by the Philippine National Police in coordinated operations in Batangas and Malabon.  

In addition, Quimbo also said the government lost P25.5 billion worth of excise taxes due to illicit tobacco trade in 2023, a 15.91% decline in cigarette excise tax collections compared with the previous year.

“The recent seizure confirms that organized cigarette smuggling remains a serious national problem that requires urgent action. Large-scale tobacco smuggling weakens both public health policy and tax enforcement by keeping cigarette prices artificially low and undermining the intent of sin tax reforms,” Quimbo, a lawyer, said.

“Sa patuloy na smuggling ng sigarilyo, mas nagiging accessible ang bisyo sa kabataan at mahihirap nating kababayan. Patuloy din nawawalan ng pondo ang gobyerno para sa mga health programs, lalo ng PhilHealth” he added.

(With the proliferation of smuggled cigarettes, this makes it accessible to the youth and the poor, and the government is losing funds for our health programs, especially for PhilHealth.) 

Quimbo said the inquiry will review current enforcement systems, coordination among agencies, and existing penalties to determine whether they are still adequate to deter large-scale illicit tobacco trade.

“While our law enforcement agencies have been vigilant on this case, the magnitude of the issue demonstrates the need for systemic reforms. The inquiry should help close regulatory loopholes, tighten oversight across the tobacco supply chain, and ensure smugglers are prosecuted so legitimate businesses can compete fairly. Smugglers must be prevented from profiting at the expense of public health and taxpayers,” he said. —AOL, GMA Integrated News