Tobacco growers poised to lose P1 billion due to competition from illicit products

THE Philippine Tobacco Growers Association (PTGA) said domestic growers stand to lose nearly P1 billion in income this year due to competition from illicit tobacco products, which has affected demand for tobacco leaf.

It said the lost income averages out to about P17,000 per farmer among its 59,000 members.

The National Tobacco Administration (NTA) said its own estimate of the tobacco-farming industry is 430,000 farmers, farm workers, and their families, who are directly affected by competition from untaxed tobacco products.

“The illicit tobacco trade is a significant challenge, adversely impacting government revenue, public health, national security, and the livelihood of Filipino farmers,” NTA Administrator and CEO Belinda S. Sanchez said in a statement.

According to the Philippine Tobacco Institute, the lobby group for cigarette manufacturers, black-market alternatives can sell for as little as P2 per stick, compared to around P7 for legal brands.

The NTA also warned the public that counterfeit cigarettes can contain lead, insect parts, rat droppings, and even synthetic drugs, making them potentially more hazardous than regulated products.

The Bureau of Internal Revenue estimates that the government foregoes P40 billion to P52 billion annually in uncollected excise taxes due to illicit tobacco, reducing the funding available for universal healthcare, hospital services, medicine, and PhilHealth coverage for low-income families. — Vonn Andrei E. Villamiel