Philippine Department of Finance: Smuggling of Tobacco, Electronic Cigarettes Costs 52 billion Pesos a Year

  * Smoking is harmful to health, minors are prohibited from using e-cigarettes, non-smokers are not recommended to use e-cigarettes*

The Philippine Department of Finance (DOF) said on November 7 that the country lost 52 billion pesos (about 6.4 billion yuan) in tax revenue each year due to tobacco and e-cigarette smuggling.
Finance Minister Ralph Recto said during a Senate inquiry on the department’s 2025 budget proposal: “We lost 35 billion pesos (about 4.3 billion yuan) in tax revenue on tobacco, And the loss of e-cigarettes may be about 17 billion pesos (about 2.1 billion yuan).”
The announcement was made by budget sponsor Senator Grace Poe. Importers of tobacco and e-cigarette products should first register with the Bureau of National Taxation (BIR) and affix the seal of approval before shipping to the Philippines, she said.

The Customs Department had previously reported seizures of tobacco and e-cigarette products worth more than 1 billion pesos between January and August 2024.

Finance Minister Rector said that in addition to confiscating smuggled tobacco and e-cigarette products, the Ministry of Finance plans to propose amendments to the country’s e-cigarette law to eliminate tax distinctions for e-cigarette products and introduce a flat tax rate.