Manila: The Senate Committee on Ways and Means on Wednesday said illicit trade has been a major factor in the rise of smoking prevalence in the Philippines and a drop in revenue from excise taxes on tobacco products.

According to Philippines News Agency, a survey by the Food and Nutrition Research Institute (FNRI) revealed that smoking prevalence in the country has risen from 14 percent in 2021 to 18 percent in 2023. 'For almost six years, we reduced smoking prevalence, but in just two years, we're back to square one,' Senator Sherwin Gatchalian said during the public hearing. Meanwhile, revenue from tobacco excise taxes fell from a peak of PHP176 billion in 2021 to PHP134 billion in 2023.

Gatchalian, who chairs the panel, attributed this to a rise in illicit trade, with data from Kantar showing illegal cigarettes now account for 16 percent of the market, up from 5 percent in 2021. 'Illicit trade undermines our efforts. These products evade taxes and make cigarettes more accessible, promoting smoking among our people,' he said, underscoring the need to address revenue leakages by curbing illicit trade. 'Plugging these gaps is essential for both public health and government revenue,' he added.

Tobacco products are among eight excisable items in the country, alongside alcohol, vapor products, petroleum, automobiles, non-essential goods and services, sugar-sweetened beverages, and mineral products. Gatchalian emphasized the importance of enforcing stricter regulations to prevent further backsliding in smoking prevalence and revenue collection.

According to FNRI's 2023 National Nutrition Survey, the smoking rate among Filipino adolescents aged 10 to 19 has surged from 2.3 percent in 2021 to 4.8 percent in 2023. The survey, which sampled 26,301 adolescents, found that smoking prevalence significantly increases with age. Only 0.3 percent of children aged 10 to 12 smoke, compared to 13.8 percent of those aged 18 to 19.

Males, rural residents, and individuals from lower-income households were more likely to smoke, with male adolescents showing an 8.4 percent smoking rate compared to 1.0 percent among females. The survey also revealed a rise in the use of electronic cigarettes among adolescents, with usage climbing to 39.9 percent in 2023 among those who currently smoke, compared to just 7.5 percent in 2021. Manufactured cigarettes remain the dominant product, used by 65.4 percent of adolescent smokers.