The Philippine Tobacco Institute (PTI) is urging the government to lower tobacco tax rates, citing a rise in illicit trade and falling revenues.
Ahead of a Senate hearing on House Bill 11360, which proposes a staggered tax hike scheme, PTI president Jericho Nograles argued that excessive tax increases encourage smuggling and counterfeiting.
He said the growing price gap between legal and illegal tobacco products has made the black market more attractive, leading to a decline in government collections.
Last year, excise tax revenues fell to ₱134 billion, while illicit tobacco made up 18.2% of the market share.
PTI warned that continued tax hikes could further undermine public health funding and enforcement, as cheap, illegal products remain easily accessible, even to minors.
Source: PhilNews24 | May 14, 2025
