Rampant Illegal Tobacco and E-Cigarette Products Affecting Filipino Farmers

According to a report from the Manila Times on April 15th, tobacco farmers in the Philippines have stated that the rise in illegal cigarettes and e-cigarette products is the main culprit behind the increase in tobacco consumption tax. They are urging the government to implement Republic Act (RA) No. 11900.

RA 11900" is the "Regulation of Vaporized Nicotine and Non-Nicotine Products Act." The Philippine Tobacco Growers Association (PTGA) and the National Federation of Tobacco Farmers Associations and Cooperatives (Naftac) have expressed concerns that illegal disposable e-cigarette products are affecting the livelihoods of tobacco farmers and their families. PTGA Chairman Ka Turning Distor stated, "The proliferation of illegal cigarettes has already decreased the demand for locally grown tobacco leaves by domestic manufacturers. Illegal e-cigarettes only benefit smugglers and unscrupulous retailers, as they do not even pay taxes. We need the government's help to stop this 'e-cigarette epidemic' and save the local tobacco industry."

These organizations also believe that the popularity of illegal cigarettes and e-cigarette products has led to a decrease in tobacco consumption tax. It decreased from 1.76 billion Philippine pesos in 2021 to 1.6 billion pesos in 2022, then further decreased by 16% in 2023 to 1.35 billion pesos, falling short of the expected target of 1.7 billion pesos.

According to Republic Act 11346, 40% of tobacco consumption tax is allocated to the Philippine Health Insurance Corporation, 10% is allocated to the Department of Health for the enhancement of health facilities, and the remaining percentage is allocated to the national budget and tobacco-producing provinces to support tobacco farmers.

Therefore, PTGA, Naftac, and other farmer organizations urge the national government to strictly enforce "RA 11900". Naftac President Bernard Vicente stated that they support the e-cigarette ban to regulate tobacco alternatives such as e-cigarette products and heated tobacco products. He said, "Unfortunately, this new law is now being abused by unscrupulous businessmen who openly smuggle and distribute illegal e-cigarettes."

According to data from the Philippines' Tobacco Regulation Authority, there are currently approximately 2.2 million Filipinos who rely on the tobacco industry for their livelihoods, including over 430,000 farmers, plantation workers, and their family members.