PH ASEAN chairship should highlight worsening illicit tobacco trade in the region – NTA

As chair of ASEAN in 2026, the Philippines has been urged to elevate illicit trade on the regional agenda to strengthen cross-border collaboration and curb illegal trade, particularly illicit tobacco trade, according to the National Tobacco Administration (NTA).

In her opening remarks at the 3rd National Tobacco Summit, themed “Leveraging Growth, Securing Futures: Enhancing Livelihood and Revenue against Illicit Trade,” NTA President and CEO Belinda S. Sanchez said, “We can help strengthen cross-border collaboration, share best practices, and support more coordinated systems to detect, prevent, and stop illicit tobacco flows.”

Data presented at the summit on illicit tobacco incidence across ASEAN-6 showed that illicit cigarette trade accounted for 16.1 percent of total tobacco trade in 2025. Malaysia recorded the highest illicit cigarette incidence at 56.8 percent, followed by the Philippines at 25.3 percent and Thailand at 23.6 percent.

In terms of legal and illicit e-vape sales as a percentage of retail volume in 2025, the Philippines recorded the highest illicit e-vape incidence at 85.6 percent among countries where e-vapes are legal. This means that four out of five e-vapes sold in the Philippines are illicit.

The data further showed that in Indonesia, Malaysia, and the Philippines, where e-vapes are legal, illicit sales outnumber legal sales.

Across the region, losses from illicit cigarette trade reached a total of USD13.1 billion over a two-year period. Revenue losses worsened to USD6.9 billion in 2025 from USD6.22 billion in 2024. Indonesia posted the highest revenue losses at USD5.6 billion over the two years, followed by Malaysia and the Philippines at USD2.5 billion each, equivalent to approximately PHP141 billion.

Sanchez urged summit participants to push for stronger coordination, clearer strategies, and more decisive action against illicit trade. She stressed that enforcement operations, raids, and seizures must not stop at apprehensions alone. Rather, she said, these efforts must lead to strong case build-up, successful prosecution, and accountability. “Those who profit from illicit trade must not only be intercepted; they must be held responsible,” she said.

At the same time, the NTA chief said the Philippines’ ASEAN chairmanship should examine the broader environment that allows illicit trade to persist. She called for a review of policies, regulatory frameworks, tax systems, enforcement mechanisms, and regional cooperation. “We must ask where the gaps are, how illicit actors exploit them, and how government, industry, and communities can work together to close them,” she added.

Since illicit tobacco trade is a regional issue, it also demands regional cooperation, Sanchez said.

Putting an end to illicit tobacco trade means protecting the legitimate tobacco sector, defending the livelihoods of farmers and workers, and safeguarding government revenues that fund public services, she concluded.