TobaccoReporter logo

Tag: Philippines

  • Zimbabwe, Philippines Create Tobacco Pact 

    Zimbabwe, Philippines Create Tobacco Pact 

    Tobacco producers in Zimbabwe and the Philippines have entered into a pact to work together and share expertise. Tobacco is Zimbabwe’s largest agricultural export, generating $1.3 billion from 236 million kg exported in 2024, and is expecting to export 300 million kg this year. Of that, however, 98% of the tobacco is exported raw, allowing manufacturers in 60 other countries to collect much of the profits. The Philippines, on the other hand, processes 46 billion cigarettes domestically each year.

    “This is an ideal opportunity for Zimbabwean farmers and processors,” Musi Muzite, acting executive secretary for Zimbabwe’s National Economic Consultative Forum, said. “We have made significant progress in production, and by leveraging the Philippines’ expertise in processing, we can unlock greater value across the entire tobacco chain.”

    Through the Tobacco Value Chain Transformation Plan, Zimbabwe hopes to convert the tobacco manufacturing sector into a $5 billion industry by 2030 by promoting local value addition, increasing domestic funding, and improving infrastructure, such as curing facilities. It also hopes to increase its tobacco exports in the Philippines.

    “We have been in Zimbabwe and our mission is to explore areas where we can collaborate, particularly in the production of tobacco,” Robert Ambrose, the Philippines’ National Tobacco Administration regulatory manager said. “While we have a comparative advantage in processing, Zimbabwe leads in raw tobacco production, and we see great potential in combining our strengths.” 

  • PMI Exec Sees Strong Potential for Smoke-Free Products in Philippines

    PMI Exec Sees Strong Potential for Smoke-Free Products in Philippines

    A top executive of Philip Morris International (PMI) expressed optimism about the growth of smoke-free alternatives in the Philippines, saying the company sees strong potential despite being in the early stages of its market rollout.

    “In the Philippines, we are still at the very early stages, but we have a lot of confidence in smoke-free products,” said Stefano Volpetti, president of the smoke-free products category and chief consumer officer at PMI.

     Volpetti said progress in Metro Manila is already showing promise, drawing parallels with the company’s initial launches in other countries. He said PMI is committed to making smoke-free alternatives accessible to Filipino smokers, particularly through education and proper explanation of the products.

    “If you think about it, when we started in Italy and in Japan, we started from Milan and Nagoya,” Volpetti said. “We are starting the same journey in the Philippines, starting from Metro Manila. It is clear that when those smoke-free alternatives are well explained to Filipino smokers, there is clearly attraction to move from traditional cigarettes.

    “But we are very confident, because this is a journey that we have done in more than 90 countries around the world. We know the recipe of this journey and the progress in Metro Manila is very powerful.”

    At present, PMI’s smoke-free offerings in the Philippines include IQOS devices, HEETS and TEREA sticks, the more affordable BONDS device, BLENDS consumables and the ZYN oral nicotine product. When asked about the affordability of smoke-free products for Filipinos, Volpetti acknowledged the economic barriers but said PMI is working to provide more options.

    “In general, we have two important aspects of this journey,” he said. “The first aspect is to be sure that smokers understand the benefits of smoke-free alternatives. Because if you don’t understand the benefits, if the benefits are not explained to you, it is very difficult to be able to appreciate that. 

    “We are able to design the consumables in a way that is more in tune with the experience of different consumers around the world. [What the consumers around] the world wants in terms of taste, flavor, in terms of pleasure, but also in terms of the budget they are ready to pay. In the coming future, you will see a portfolio that is more balanced between the premium segment and the medium segment. Our mission is to provide choices across all consumer categories.”

  • Philippines Files Tax Evasion Case Against Vape Brands 

    Philippines Files Tax Evasion Case Against Vape Brands 

    The Philippines Bureau of Internal Revenue (BIR) filed tax evasion complaints against several vape brands due to alleged evasion of over P8.7 billion ($157 million) in taxes. The complaint was filed by BIR Commissioner Romero Lumagui Jr. before the Department of Justice on Tuesday (April 29), against vape firms carrying the brand names Flava, Denkat, and Flare.

    “It was confirmed that the excise [taxes] on these products were not paid. All of them are illicit,” Lumagui said. “This is what happens when you keep violating our tax laws. We are continuing our monitoring of the vape industry, so you can expect that this will not be the last time we file a case.”

    He also said that with the continued proliferation of illicit vape products in the market, the government’s total loss is probably billions more. The BIR said that it seized 560,000 units of vape products in 2024, representing P415 million ($7.5 million) in unpaid taxes. 

    In addition to tax evasion, the charges filed also include the illegal possession of vape products without the required excise tax under Section 263 of the National Internal Revenue Code, as well as failure to submit excise tax returns. 

  • Philippines Customs Seizes $1.5M in Illicit Cigarettes  

    Philippines Customs Seizes $1.5M in Illicit Cigarettes  

    Authorities in Bocaue, Bulacan, Philippines, seized six truckloads with 717 boxes of assorted branded cigarettes in a warehouse last week, worth P83.7 million ($1.5 million). Philip Morris Philippines Manufacturing and Japan Tobacco International both cited the Bureau of Customs’ “dedication and effectiveness” as well as the leadership of Customs Commissioner Bienvenido Rubio. 

    Owners of the warehouse will be charged for violating the Tax Reform for Acceleration and Inclusion Law if they fail to present documents within 15 days, Rubio said. Charges could also be filed against the owners of the smuggled dried tobacco products for violating the Anti-Agricultural Economic Sabotage Act. 

  • Young Asians Moving from Cigarettes to Vape

    Young Asians Moving from Cigarettes to Vape

    Young people in Southeast Asia are moving from smoking cigarettes to vaping and heated tobacco products (HTPs) instead, a survey of consumer research and data analytics from Milieu Insight said. It surveyed more than 18,000 legal-age adults across Singapore, Malaysia, Vietnam, the Philippines, and Indonesia, studying their consumption trends, flavor preferences, purchase channels, reasons for use, and future adoption.

    “The study shows some key factors influencing this trend,” said Gerald Ang, Milieu Insight’s chief operating officer. “One key factor is the variety of flavor, with fruit and menthol flavor dominating consumer choice in alternative nicotine products.

    “E-cigarettes and heated tobacco products being ‘cheaper’ is also an important reason for using alternative nicotine products.”

    Even though Singapore has banned the use of alternative nicotine products, they are still prevalent among people aged 21 to 29, the survey found, with 7.8% in that age group use vapes and HTPs, while 5.7% smoke cigarettes. The study also found that in Singapore, 43% bought these products from online shopping and messaging platforms, 29% bought the alternative nicotine products from friends and family, and 19% bought them on social media platforms.

    Ang said the study shows that e-cigarette and HTP use in the region is expected to grow, as a sizeable portion of smokers indicated that they were likely to use alternative nicotine products in the next six months.

    In Vietnam, which has also banned these alternative nicotine products, 9.2% of people in the 25 to 34 age bracket are vaping. And in Malaysia, 14.8% of young people between 20 and 29 are using e-cigarettes and HTPs.

  • Virginia Tobacco Begins Trading in Philippines 

    Virginia Tobacco Begins Trading in Philippines 

    The National Tobacco Administration (NTA) said that growers who planted the last week of November have already started bringing flue-cured Virginia tobacco buying stations in Region 1 and Abra to open the 2024–2025 crop season.

    Administrator and Chief Executive Officer Belinda S. Sanchez said NTA extension workers have already calibrated and sealed the trading equipment and facilities of the two biggest tobacco trading outlets in the Ilocos region, as well as the scales of accredited field canvassers

    Trading warehouses of the Universal Leaf Philippines, Inc. in Agoo, La Union; Candon City and Cabugao, both in Ilocos Sur; Currimao, Ilocos Norte; and Bangued, Abra; and the warehouse of Trans Manila Incorporated (TMI) in San Juan, Ilocos Sur, are now open.

    Trading centers opened by purchasing a kilo of prime class of flue-cured tobacco at P107 ($1.89) while field canvassers in the first district of Ilocos Sur bought the same class of cured tobacco as high as P125 ($2.13) per kilo. With these, Sanchez said she is expecting another golden season for tobacco farmers this year, as the current tobacco buying prices are much higher than the approved tobacco floor prices during the tripartite conference in October 2023.

  • Philippines Looks to Tighten Vape Import Laws 

    Philippines Looks to Tighten Vape Import Laws 

    Potential new requirements have been drafted in an administrative order to tighten measures against the illegal trade of vape products, promote consumer safety, and streamline import procedures in the Philippines. Today (March 10), the Department of Trade and Industry asked the public and stakeholders to help provide insights for its amended documentary requirements in the issuance of a Statement of Confirmation (SOC) for product importers. The SOC is a mandatory certification that verifies the legitimacy and compliance of imported vape products and tobacco items.

    In the proposed order, importers would need to submit an expanded set of documents consisting of a packing list, commercial invoice, bill of lading/airway bill, production batch details, and a valid Philippine Standard License. Additional compliance requirements include a P150,000 ($2,550) surety bond, a valid certificate of registration from the Bureau of Customs, proof of billing and ownership, or lease of warehouse space, and an excise tax return with a Bureau of Internal Revenue stamp.

  • Philippines to Align Cigarette and Vape Taxes 

    Philippines to Align Cigarette and Vape Taxes 

    The Philippines’ Bureau of Internal Revenue (BIR) said it plans to balance taxes on vape products and traditional cigarettes this year to boost collection. It currently charges P63 ($1.07) in taxes per pack of 20 cigarettes and for every 10 ml of classic nicotine liquids, but other vape devices are charged higher at P109.20 ($1.86) for 2 ml salt nicotine pods. From January to November 2024, the government collected P128.98 billion ($2.2 billion) in taxes from tobacco and P1.35 billion ($23 million) from vape products.

    BIR Commissioner Romeo Lumagui Jr. said that aligning tax rates for both products is a priority for the BIR to maximize collections from the tobacco and vape industries. “I think it will happen this year,” he said. “There will be an improvement, and the drag down of excise taxes on tobacco and vape will not be that big.”

    Lumagui also said the BIR will be destroying confiscated cigarettes nationwide, with vape products to be destroyed once they are inventoried.

  • Relx WeCreate Gets Approval in Philippines

    Relx WeCreate Gets Approval in Philippines

    Relx announced that its new WeCreate closed pod system gained approval to carry the Philippine Product Standard Mark. RELX says the WeCreate is a breakthrough in customizable vaping technology, blending precision design with advanced features. It has an 800mAh battery that can provide between seven and 15 days of usage on a single charge, a USB Type-C charging port, an adjustable airflow system, and a smart display that “provides real-time information on battery status and other essential details, ensuring users remain informed and in control.”

    The RELX WeCreate offers 14 distinctive pod flavors, each designed to complement the device’s advanced technology.

  • Philippines: Tobacco Orgs Backing Tax Moratorium

    Philippines: Tobacco Orgs Backing Tax Moratorium

    Seeking a “sweet spot,” the Philippines’ government is considering a moratorium on tobacco excise tax hikes in order to curb illicit trade and protect its revenue. Currently, the excise tax is P60 ($1.03) per pack and grows 5% annually. A pack of illicit cigarettes can be purchased for P40 ($0.69) per pack, less than the tax itself.

    According to the Food and Nutrition Research Institute, smoking in the country increased from 18.5% in 2021 to 23.2% in 2023. Over the same period, illicit cigarettes increased 13.6% to 19.8%. Despite the increase in smoking, the Bureau of Internal Revenue has watched its collected excise taxes steadily decline each year, going from P176.48 billion ($3 billion) in 2021 to P134 billion ($2.3 billion) last year, P51 billion below budget.

    “Illicit trade thrives due to the availability of untaxed cigarettes sold at a fraction of legitimate products,” said Jericho Nograles, president of the Philippine Tobacco Institute (PTI). “Legal cigarettes are up to five times more expensive than their illicit counterparts.”

    Both the PTI and the National Tobacco Administration (NTA) supported the tax moratorium for 2026, saying it is a “practical” and “targeted” solution against illicit cigarette trade.

    “By pausing the excise tax increase for 2026, we can temporarily stabilize the market and reduce the price disparity between legitimate and illicit cigarettes,” NTA administrator and CEO Belinda Sanchez said. “This pause will help legitimate manufacturers regain competitiveness, which is crucial to restoring demand for locally produced tobacco leaf for local consumption.

    “The widening gap between the prices of legitimate and illicit cigarettes, aggravated by successive excise tax increases, has incentivized the proliferation of smuggled and counterfeit products.”

    While the moratorium has been discussed for some time, the House of Representatives recently passed on second reading House Bill 11360, which would replace the moratorium and instead impose lower tax rates on tobacco products, proposing a schedule where the excise tax is raised 2% in even-numbered years and 4% in odd.

    Pointing to the billions they are losing in revenue, Department of Finance Secretary Ralph Recto said they are open to all proposals and “hopes the government can find a sweet spot.”