A recent study has found that the cities of Zamboanga and General Santos have the highest levels of illicit cigarette trade in the Philippines, attributed to weak enforcement of security at maritime borders and longstanding trade relations with Malaysia and Indonesia. The study, conducted by the Action for Economic Reforms and Johns Hopkins Bloomberg School of Public Health, found that 79.5% of cigarette packs in Zamboanga and 38.5% in General Santos were sold below the combined excise and value-added tax, and that the cities had high rates of tax stamp violations and smuggling of unregistered brands. The study’s lead researcher, Daffodil Santillan, said that the results contradict claims by the tobacco industry that higher taxes on tobacco products have led to an increase in illicit trade, and instead point to weak law enforcement and regulatory oversight as the main drivers of the problem. The study recommends upgrading the tax stamp system, licensing tobacco retailers, and strengthening cooperation with neighboring countries to address the issue.
