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.

New Movement Emerges on EU Tobacco Excise Directive as Cyprus Tables Compromise Draft
New Movement Emerges on EU Tobacco Excise Directive as Cyprus Tables Compromise Draft
The long-stalled debate over the European Union’s Tobacco Excise Directive may be moving forward, with Cyprus, as holder of the EU Council presidency, putting forward a compromise draft. The reported proposal includes lowering the minimum excise duty requirement and granting a transitional period, with the aim of reaching political agreement by June 2026. The revision also covers e-cigarettes, heated tobacco, nicotine pouches and stronger controls on raw tobacco.
Apr.21 by 2FIRSTS.ai
Netherlands Plans Law to Ban Possession of Large Quantities of Vapes Intended for Trade
Netherlands Plans Law to Ban Possession of Large Quantities of Vapes Intended for Trade
Dutch Health Minister Hermans is drafting legislation that would also ban possession of larger quantities of vapes, allowing the Netherlands Food and Consumer Product Safety Authority to intervene earlier and seize stock before proving that trade has taken place.
Apr.13 by 2FIRSTS.ai
Imperial Brands Launches 2ml+10ml blu MAX 6000 Vape System
Imperial Brands Launches 2ml+10ml blu MAX 6000 Vape System
mperial Brands has launched blu MAX 6000 in the UK, positioning the product as a higher-puff vape kit with longer-lasting use and replaceable pod+refill options. The device uses a 2ml+10ml click-on box format, with starter kits priced at £10.99 (approximately $14) and replacement pod+refill packs priced at £7.99 (approximately $10).
Market
May.19
Nicokick and zone Extend NASCAR Collaboration for April 19 Kansas City Race
Nicokick and zone Extend NASCAR Collaboration for April 19 Kansas City Race
Nicokick.com said it will continue its collaboration with zone for a second year at the April 19 NASCAR race in Kansas City, appearing on Richard Childress Racing’s No. 8 Chevrolet driven by Kyle Busch. The 2026 race-weekend campaign for verified adult nicotine consumers aged 21 and older includes the exclusive launch of zone Cranberry and a limited-edition five-flavor mix pack selected by Busch.
Apr.16 by 2FIRSTS.ai
Multi-State Coalition Urges F1 to End Nicotine Sponsorships, Citing Zyn and Velo
Multi-State Coalition Urges F1 to End Nicotine Sponsorships, Citing Zyn and Velo
Hawaii Attorney General Anne Lopez is co-leading a coalition of 19 states and jurisdictions urging the Fédération Internationale de l’Automobile (FIA) and Formula 1 to end sponsorships involving tobacco and nicotine products, including nicotine pouch brands such as Zyn and Velo.
News
Jun.09
 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