Farmers push for appointment of  brave tobacco czar

Farmers belonging to the Philippine Tobacco Growers’ Association, led by Saturnino Distor, are pushing for the appointment of a tobacco czar who can combat the surge of illicit or smuggled cigarets into the country.

Distor said “instead of our buyers purchasing more from us, smuggled products are taking a share of the market. Farmers are affected by this.”

The illicit trade has resulted in P54.4 billion in excise tax losses on cigarettes in 2024 alone, with the average foregone revenues ranging from P60 billion to P100 billion every year.

Findings from global research firm Kantar showed illicit cigarettes accounted for 16.4 percent of the market in 2024, due to stark differences in prices.

While a pack of cigarettes, inclusive of taxes, costs P170 on average, a smuggled one costs only P78.40 in the market.

“Even tobacco farmers smoke smuggled cigarettes,” Distor said.

Despite such smuggling, all of the tobacco grown by local farmers are being purchased as their production remains sufficient.

But farmers remain vigilant as they continue to monitor the smuggling situation due to fears that the entire tobacco supply chain will be flooded with smuggled goods. 

The tobacco czar, he said, must be brave and must defend tobacco farmers’ interests. “He must also have the ability to push for laws that will benefit our farmers.”

Philippine Tobacco Institute President Jericho Nograles warned that illicit tobacco and vape products have proliferated “at a scale beyond what current law enforcement agencies can effectively control.”

Also, despite tax measures intended to lessen cigarette consumption, Nograles said smoking incidence is rising due to the uncontrolled expansion of illicit trade, reported Business Mirror.

“Revisiting the annual tax increases and stabilizing the legitimate market will remove financial incentives for smugglers and criminal syndicates to flood the market with untaxed cigarettes.”

he House of Representatives passed House Bill (HB) 11360 on third and final reading and endorsed it for Senate approval.

Under the measure, excise tax rates on tobacco and vapor products will increase by 2 percent every even-numbered year starting January 1, 2026, and by 4 percent every odd-numbered year from January 1, 2027, until December 31, 2035.