The Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) reported a significant boost in tax collection from vape products, reaching P1.35 billion from January to November 2024, a threefold increase from P361.6 million collected in the entire 2023.
OSAPIEA Secretary Frederick Go, in a speech delivered by Undersecretary Joey Guillas, revealed that heated tobacco products (HTPs) alone generated P519.1 million in taxes in the same period, surpassing last year’s total of P459 million by 13 percent.
“While there are concerns over widespread smuggling and industry of excisable products, including cigarettes and vapes. Over the years, there has also been a shift towards heated tobacco products and vaping. However, regulation and the implementation of proper taxation measures for these new industries have not been able to keep up,” he said.
He said the Office for the Special Mandate on Vaporized Nicotine and Non-Nicotine Products (OSMV) has been actively working to curb the illegal sale of non-certified vape products.
Meanwhile, tobacco farmers are optimistic about meeting the government’s 2025 output forecast of 45.57 million kilograms, slightly up from the 2024 output of 45.4 million kg.
Philippine Tobacco Growers Association (PTGA) president Saturnino Distor said at the 2nd International Illicit Tobacco Summit 2025 the local tobacco industry is hopeful about increased yields as farmers pivot from corn farming due to persistent pest issues.
“We are confident that tobacco yields will surpass the 2024 figures, thanks to improved farming practices and the shift of many corn farmers to tobacco production,” Distor said at the sidelines of IITS 2025.
The average yield per hectare in 2024 was around 2.6 metric tons, but some farmers are producing up to 4 metric tons per hectare, he said.
“With better technology, more support from the National Tobacco Administration, and our buyer firms, we expect production to increase in 2025. If we can reach 3,000 kilos per hectare, that would be a notable improvement,” Distor said.
National Tobacco Administration (NTA) deputy administrator for operations Nestor Casela said a global shift in tobacco production could favor local farmers.
“China has reduced its tobacco production, making Philippine tobacco more competitive on the global market. This has led to higher prices, with some tobacco fetching as much as P125 per kilo in 2024,” Casela said.
Tobacco traders said the outlook for 2025 indicates a projected decrease in prices to P99 per kilogram, which is still above the approved floor price of P97.
“The higher prices in recent years have encouraged farmers to plant more, resulting in higher production. This trend is expected to continue, as the global competitiveness of Philippine tobacco remains strong due to improvements in grading systems and local government support,” Casela said.
Casela said the good tobacco pricing may persist in the next four to five years.
