President Marcos told the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR) to step up their efforts to protect the country’s tobacco industry against the smuggling of tobacco and vape products.

Marcos said this during the sixth Private Sector Advisory Council-Agriculture Sector Group (PSAC-ASG) meeting in Malacañan on Wednesday, May 8.

In his remarks, the President recognized the government's anti-smuggling measures but asked the BOC and the BIR to intensify their enforcement.

"Enforcement and anti-smuggling and all that. You really have to beef them up and I think we’re doing that," he said.

"There will be [more efforts] with the Bureau of Customs and BIR so that we can improve performance in that regard," he added.

In response, Special Assistant to the President on Economic and Economic Affairs Frederick Go said the Department of Trade and Industry (DTI) Consumer Protection Group will assign a significant number of people dedicated to monitoring the vape industry.

BIR Commissioner Romeo Lumagui Jr. told the President that his agency has intensified its crackdown against smuggled vape products and will implement a tax stamp system to fish out the illicit ones.

For its part, the PSAC-ASG made several recommendations and policy requirements to protect the tobacco industry.

The advisory body pushed a move tasking the Department of Budget and Management (DBM) to release funds as prescribed under Republic Act No. 4155 for the National Tobacco Authority (NTA) Sustainable Tobacco Enhancement Program (STEP).

It also sought amendments to the Anti-Agri Smuggling Act of 2016 to include tobacco products. The body also wants provisions on minimum retail price (MRP) and penalties for distributing and selling smuggled products.

The body also called on the DTI to set a deadline for the registration of importers and manufacturers of vapor products and the BIR to start imposing tax requirements on tobacco and vapor products.

"There must also be sustained enforcement of laws against smugglers and retailers of smuggled tobacco and vapor products," the group said.

"Operations involving these products should also be reported to the Office of the President on a monthly basis," it added.

The tobacco industry provides livelihood to 2.2 million Filipinos. In 2023, the tobacco excise tax composed four percent of total government revenues or P135 billion.

The government earmarks 50 percent of excise tax collection for Universal Health Care under the Department of Health (DOH) and PhilHealth as well as for the Health Facilities Enhancement Program (HFEP).