The Potential Losses to the Philippine Government from Illegal E-cigarette Sales

Aug.24.2023
The Potential Losses to the Philippine Government from Illegal E-cigarette Sales
Illegal e-cigarette sales could cost the Philippines government approximately 13.3 billion pesos, says Energy Department official Sharon Garin.

According to a report from Philippine media outlet Philstar on August 24th, government officials in the Philippines have revealed that the government stands to lose approximately 13.3 billion pesos (equivalent to about 1.7 billion yuan) if the sale of illegal e-cigarette products continues.


Sharon Garin, the deputy minister of the Department of Energy in the Philippines, revealed that this amount is equivalent to Filipinos consuming 416 million milligrams of illegal e-cigarette products.


According to Jalil, considering the potential tax losses from e-cigarettes and tobacco products, the overall amount could exceed 50 billion pesos (approximately 6.4 billion yuan). This could pose challenges for the government's health insurance program in terms of funding.


She admits that the government is currently facing difficulties in combating individuals involved in the smuggling of illicit tobacco and e-cigarette products, as well as those who evade the law by producing them locally.


Illegal traders are continuously becoming more creative in their methods, as they learn how to expand their operations.


According to her knowledge, the Philippines is an archipelagic nation where enforcement agencies such as the Bureau of Internal Revenue and the Bureau of Customs are unable to regulate all the ports nationwide. As a result, some e-cigarettes and tobacco products are able to enter the country through private ports. Furthermore, certain businesses have imported machines to produce products within the Philippine borders without paying taxes.


Garin calls on the public to "beware" of purchasing and consuming illegal tobacco and e-cigarette products.


Philip Morris International (PMI) President Denis Gorkun is calling on the government, particularly the Department of Trade and Industry, to establish standards for e-cigarette products. His company has long been advocating for e-cigarettes as a "better alternative.


He stated that the company's employees have discovered "50% to 60%" of illegal tobacco and e-cigarette products in Bintan Island. These products are likely to have been smuggled into the area via small boats and then distributed to convenience stores or retail shops.


According to the law, e-cigarette manufacturers should not sell their products to minors, nor should they offer flavors that appeal to children. There are also additional restrictions in place.


Gorkun further disclosed that the company has "invested 500 billion pesos" in the introduction of new products such as e-cigarettes and nicotine patches, positioning them as alternatives to traditional smoking and even making them more affordable through installment payments.


Garin refuted the call to increase taxes on e-cigarette products in order to discourage smoking, as she claimed that this could potentially attract more illicit e-cigarette vendors into the market.


Galin said:


If we make it more expensive, they will choose cheaper alternatives. Whether through taxation, regulation, or prohibition, I believe none of these will deter our fellow citizens from continuing to smoke.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Italy Fines PMI €7 Million Over Misleading ‘Smoke-Free Future’ Marketing Claims
Italy Fines PMI €7 Million Over Misleading ‘Smoke-Free Future’ Marketing Claims
Italy’s Competition and Market Authority (AGCM) has fined Philip Morris Italia €7 million, finding that the company’s use of “smoke-free future” and related claims in promoting products such as IQOS, VEEV and ZYN could mislead consumers.
Jun.16
Argentina’s New Nicotine Rules Draw Cautious Optimism and Market Concerns, Local Tobacco Harm Reduction Advocate Says
Argentina’s New Nicotine Rules Draw Cautious Optimism and Market Concerns, Local Tobacco Harm Reduction Advocate Says
Argentina’s new tobacco and nicotine framework marks a shift from prohibition toward registration, traceability and health surveillance. Argentine THR advocate Juan Facundo Teme told 2Firsts that adult consumers and parts of the local commercial sector are cautiously optimistic, but concerns remain over flavor limits, registration costs and market access. The policy’s implementation may determine whether Argentina can move informal sales into regulated channels.
May.11
German Environment Minister Plans Bill to Ban Disposable E-Cigarettes This Year
German Environment Minister Plans Bill to Ban Disposable E-Cigarettes This Year
German Federal Environment Minister Carsten Schneider said he is preparing legislation to ban disposable e-cigarettes and will present a bill this year. Industry data estimated that legal e-cigarette sales in Germany rose by about one quarter in 2025 to €2.4 billion. Refillable devices are not expected to be affected by the ban.
May.09 by 2FIRSTS.ai
How AI Is Rewriting the Talent Playbook for the Nicotine Industry: JTI’s Case
How AI Is Rewriting the Talent Playbook for the Nicotine Industry: JTI’s Case
AI is moving from a back-office tool to a core organizational capability in the nicotine industry. Based on JTI’s responses, this 2Firsts feature examines how AI is reshaping talent strategy, internal mobility, decision-making and human accountability as global tobacco companies compete in the shift toward new nicotine categories.
Jun.17
FDA Renews Exposure Modification Authorization for IQOS Devices and Three HeatSticks Products
FDA Renews Exposure Modification Authorization for IQOS Devices and Three HeatSticks Products
U.S. Food and Drug Administration renewed modified risk granted orders for five IQOS products from Philip Morris Products S.A., including two IQOS system holders and chargers and three HeatSticks products. Under the renewed orders, the products may continue to be marketed with an exposure modification claim.
Apr.20 by 2FIRSTS.ai
 BAT Raises Growth Outlook for Smokeless Products as Velo and Vuse Gain Momentum
BAT Raises Growth Outlook for Smokeless Products as Velo and Vuse Gain Momentum
British American Tobacco (BAT) has raised its growth outlook for smokeless products, forecasting “mid-teens” growth for its new category portfolio, including vaping and nicotine pouch products, while global cigarette volumes are expected to decline further.
BAT
Jun.02