Key government and law enforcement agencies are set to strengthen cooperation against the growing threat of illicit tobacco trade amid mounting concerns over the proliferation of illegal tobacco and nicotine products in the country and the substantial revenue losses they generate.
Authorities emphasized the need for stronger regional collaboration to address the cross-border nature of the problem.
The Department of Agriculture (DA) and the National Tobacco Administration (NTA) will convene the Third International Tobacco Summit, themed “Leveraging Growth, Securing Futures: Enhancing Livelihood and Revenue against Illicit Trade,” reaffirming the Philippines’ commitment, as ASEAN Chair, to elevate the fight against illicit tobacco trade as a key regional priority.
The summit, scheduled on June 18 at the Marco Polo Ortigas Manila in Pasig City, will focus on addressing the economic and revenue challenges posed by illicit tobacco trade in the Philippines.
A recent study by the European Union–ASEAN Business Council (EU-ABC) and Euromonitor International found that the Philippines lost an estimated PHP141 billion (USD2.46 billion) in government revenue to illicit tobacco trade between 2024 and 2025.
Of the total amount, approximately P118.1 billion was attributed to illicit cigarettes, while P22.9 billion was lost due to illegal e-vapor products.
The same report revealed that 85.6 percent of e-vapes sold in the Philippines were illicit, representing the highest share of illegal vape products among Southeast Asian countries where vaping is legal.
Beyond revenue losses, illicit tobacco trade undermines legitimate agricultural livelihoods, weakens regulatory compliance, and erodes fair competition in the market.
“Illicit tobacco trade is not only stealing revenues from government—it is stealing livelihoods, opportunities, and the future of our tobacco-growing communities. This summit is about uniting government and stakeholders behind one clear message: We will protect legitimate farmers, defend lawful trade, and hold illicit operators accountable,” said NTA Administrator and Chief Executive Officer Belinda Sanchez.
The summit is expected to highlight the Marcos administration’s whole-of-government approach to protecting the livelihoods of approximately 2.2 million tobacco farmers, their families, workers, and retailers who are affected by smuggling and illicit trade.
Illegal cigarettes and vape products displace demand for legitimate tobacco products as consumers shift to cheaper, untaxed alternatives. This weakens demand across the legal tobacco value chain and ultimately affects farming communities.
A ceremonial signing of a Joint Commitment will also be held, during which top officials from key government agencies will formally pledge to align and strengthen their strategies against illicit trade.
The summit aims to move beyond statistics and address critical gaps in taxation, enforcement, regulation, and prosecution.
It will likewise provide a platform to discuss how enhanced regional cooperation among ASEAN Member States can improve information sharing, enforcement coordination, and policy alignment in combating cross-border illicit trade.
The event will bring together government officials, regulators, law enforcement agencies, industry stakeholders, and international experts to exchange best practices and strengthen collaborative efforts against illicit trade.
A high-level panel discussion will feature Interior Secretary Jonvic Remulla, Philippine National Police (PNP) chief Gen. Jose Melencio Nartatez Jr., Bureau of Customs (BOC) Commissioner Ariel Nepomuceno, and Prosecutor General Richard Anthony Fadullon. The panel will focus on how intensified enforcement operations can lead to successful prosecutions and convictions of illicit trade offenders.
The summit will also feature presentations and insights from Agriculture Undersecretary Roger Navarro, Finance Undersecretary Rolando Ligon Jr., NTA Administrator Sanchez, Philippine Tobacco Institute President Bayani Elero-Tinga, Japan Tobacco International Area Director for North and South Asia Valentin Dinca, NTA Deputy Administrator Nestor C. Casela, Euromonitor International APAC Head of Consulting Firdaus Muhamad, and EU-ABC Executive Director Chris Humphrey.
