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.
