Government Cracks Down on Illegal Tobacco Trade
The National Tobacco Administration (NTA) issued a stern warning to retailers across the Philippines on Friday, November 7, 2025, against selling counterfeit or smuggled cigarettes. The agency emphasized that those caught engaging in this illicit trade will face severe penalties including substantial fines and potential imprisonment.
Alarming Price Difference Drives Black Market
According to recent industry data, the price gap between legal and illegal tobacco products has become increasingly concerning. Fake cigarettes are being sold for as low as PHP3 to PHP4 per stick, significantly undercutting the PHP7 per stick price of the cheapest legal, tax-paid cigarettes. When purchased by the pack, illicit cigarettes reportedly sell for around PHP30, compared to PHP82.49 for legitimate brands.
The NTA statement highlighted that illicit tobacco represents a widespread problem with far-reaching consequences. "Illicit tobacco is a widespread problem that destroys legitimate businesses, compromises public safety, and robs tobacco farmers of their livelihood," the agency stated.
Severe Penalties Await Violators
Retailers found guilty of selling counterfeit cigarettes may face:
- Fines ranging from PHP50,000 to PHP200,000 for trademark violations
- Imprisonment of two to five years
Additional penalties include:
- Five to eight years in prison for selling tobacco products without required tax stamps
- Fines up to PHP100,000 and one year imprisonment for selling items without graphic health warnings
The warning comes as the NTA intensifies its campaign against the growing proliferation of illegal tobacco products from what they describe as a "booming" black market.
To combat this issue, the NTA has distributed approximately 50,000 posters and information materials to sari-sari stores in major cities nationwide. This awareness campaign aims to educate both retailers and consumers about the dangers of illicit tobacco products while protecting legitimate businesses.
The Bureau of Customs has been actively seizing illegal cigarettes, as evidenced by recent operations in Bulacan, demonstrating the government's commitment to eradicating this illegal trade.
