CANDON CITY, Ilocos Sur – The National Tobacco Administration (NTA) has warned that the proliferation of the illicit cigarette trade in the Philippines is putting at risk the livelihoods of some 2.2 million farmers, contract workers, and their families.

“The illicit tobacco trade is a significant challenge, adversely impacting government revenues, public health, national security, and the livelihood of Filipino farmers,” said NTA Administrator and Chief Executive Officer Belinda S. Sanchez.

Smuggled and illegally manufactured cigarettes, sold at rock-bottom prices, are undercutting the demand for legally produced, tax-paid brands. The NTA estimates that over 430,000 farmers, farm workers, and their families are directly affected by the flood of untaxed products.

“The illicit trade in tobacco is a growing concern, undermining our efforts and threatening the livelihoods of countless individuals,” Sanchez added.

Sanchez noted that humble stick of ‘’yosi’’ now funds more than just a vice. It fuels crime, drains public coffers, and endangers the livelihoods of over two million Filipinos who depend on the legitimate tobacco industry.

The impact ripples beyond the farmlands.

Retailers, vendors, and sari-sari store owners who depend on legitimate cigarette sales are struggling to compete with black-market alternatives that can sell for as little as ₱2 per stick, compared to around ₱7 for legal brands, according to the Philippine Tobacco Institute (PTI).

The group warned that many small businesses could soon be forced to “close shop.”

The Bureau of Internal Revenue (BIR) estimated that the government loses between ₱40 billion to ₱52 billion annually in uncollected excise taxes due to illicit tobacco.

These losses severely undercut funding for the Universal Health Care (UHC) program, which depends on tobacco tax revenues to sustain hospital services, medicines, and PhilHealth coverage for low-income families.

“This is not just about unfair competition – it’s about depriving Filipinos of essential healthcare,” a BIR official said on condition of anonymity.

The Philippine Tobacco Growers Association (PTGA), headed by Saturnino Distor, projected that local farmers could lose nearly ₱1 billion in income this year alone due to the declining demand for locally grown tobacco leaves. The group estimated a total loss of ₱978.44 million in 2025, equivalent to approximately ₱17,000 per farmer among its 59,000 members.