LOCAL tobacco growers said that the proliferation of illicit cigarettes and vape products is to blame for lower excise collections, urging the government to enforce Republic Act (RA) 11900.
RA 11900 is the "Vaporized Nicotine and Non-Nicotine Products Regulation Act."
The Philippine Tobacco Growers Association (PTGA) and the National Federation of Tobacco Farmers Association and Cooperatives (Naftac) said that illegal and disposable vape products threaten the livelihood of tobacco farmers and their families.
"Tobacco farmers are already reeling from the proliferation of illicit cigarettes, which has reduced demand for locally produced tobacco leaf among domestic manufacturers," said PTGA President Ka Turning Distor.
Distor said that vape products do not contain dried tobacco leaves and do not directly benefit tobacco farmers.
"Illegal vapes only benefit smugglers and crooked retailers since they don't even pay taxes. We need the help of the government to stop this 'vapedemic' and save the local tobacco industry," he said.
The groups also said that the proliferation of illicit cigarettes and vape products has reduced the demand for locally produced tobacco and has led to a drop in tobacco excise tax collections.
Tobacco excise taxes fell from P176 billion in 2021 to P160 billion in 2022. In 2023, a 16-percent drop to P135 billion was reported, falling short of the targeted P170 billion for the year, according to the Bureau of Internal Revenue.
"Less excise tax collections from tobacco means less support for us farmers," Distor said.
Under RA 11346, 40 percent of tobacco excise taxes are allocated for Philippine Health Insurance Corp. while 10 percent goes to the Health Facilities Enhancement Program of the Department of Health.
The remaining percentage, meanwhile, is allocated to the national budget and tobacco-producing provinces to support farmers of the crop.
In line with this, PTGA, Naftac and other farmers' groups urged the national government to enforce RA 11900 strictly.
Naftac Chairman Bernard Vicente said that they also support the Vape Bill to regulate cigarette alternatives such as vape products and heated tobacco products and promote the utilization of local tobacco.
"Unfortunately, this new law is now being abused by unscrupulous businessmen who are blatantly smuggling and distributing illegal vapes," Vicente said.
Data from the National Tobacco Administration showed that there are currently 2.2 million Filipinos who are financially dependent on tobacco, including more than 430,000 farmers, farm workers and their family members.
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