Philippines

Illicit Incidence fell in 2017 to 6.5% from 13.1% in 2016, underpinned by a sharp reduction in Domestic Illicit Consumption.
Philippines
Illicit Trade Volume (Bn)
2012 2013 2014 2015 2016 2017
Illicit trade Incidence (%)
2012 2013 2014 2015 2016 2017
Total Tax Loss (PHP Bn)
2012 2013 2014 2015 2016 2017

Composition of Cigarette Consumption

80.8Bn Cigarettes
  • Cigarettes
    Bn
  • Legal Domestic Consumption (LDC)
    75.5
  • Non-Domestic Legal (NDL)
    0.1
  • Non-Domestic Illicit
    1.7
  • Domestic Illicit
    3.6
Total Cigarette Consumption
80.8Bn
Total Illicit Consumption
5.3Bn

Estimated Excise Tax Loss

PHP 9.4 Bn
  • PHP
    Bn
    USD Mn
  • Lost excise revenue
    7.9 157.1
  • Lost VAT revenue
    1.5 28.8
Actual revenue from excise duties on tobacco
PHP 94.4 Bn
Estimated Tax Loss From Illicit Consumption
PHP 9.4 Bn

Philippines

  • Total Consumption (legal and illicit) was estimated at 80.8 billion cigarettes in 2016. Total Consumption has consistently trended downwards since the beginning of the Asia Illicit Tobacco Indicator in 2012, falling by a further 3.6% in 2017.​

  • Illicit Consumption was estimated at 5.3 billion cigarettes in 2017, equivalent to 6.5% of Total Consumption. Illicit Incidence declined by 6.6 percentage points from 2016, driven by a series of successful enforcement actions.​

  • The decline in Domestic Illicit Consumption coincided with the government indictment of Mighty Corporation for tax fraud.

  • The Tax Loss from Illicit Consumption was estimated at PHP 9.4 billion (USD 186 million) in 2017, falling by 46.3% in comparison with 2016. ​

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