REGIONAL STUDY’S FINDINGS: Gov’t loses P23 billion in revenues over illegal vapes

BIGGEST VAPE HAUL. Bureau of Customs Commissioner Ariel Nepomuceno (with mic) leads a press conference announcing the seizure of P1.4 billion worth of illegal vape products at a warehouse in Navotas City on March 23, 2026. Nepomuceno said it is the Customs’ largest vape seizure to date. PNA
BIGGEST VAPE HAUL. Bureau of Customs Commissioner Ariel Nepomuceno (with mic) leads a press conference announcing the seizure of P1.4 billion worth of illegal vape products at a warehouse in Navotas City on March 23, 2026. Nepomuceno said it is the Customs’ largest vape seizure to date. PNA

MANILA — Some 86 percent of vapes sold in the Philippines in 2025 were illicit, marking the highest rate among Southeast Asian countries where vaping products remain legal, according to a regional study.

In a report released on Monday, the EU-Asean Business Council and market intelligence firm Euromonitor International estimated that illicit vape sales in the Philippines caused government revenue losses of around $400 million, or roughly P23 billion, from 2024 to 2025 alone.

The report comes amid renewed calls in the Philippines, led by the Department of Health and several lawmakers, to ban vape products altogether or prohibit nontobacco flavors, which regulators say are more appealing to minors.

Imported from China

“In markets where e-vapor products are legal such as the Philippines, illicit e-vapor products are found to be sold in independent tobacconists, specialty vape shops, etc,” it said.

Illicit vapes are mostly imported from China and are often disguised as ordinary e-commerce parcels because of their compact size and individual packaging, the report said.

While losses from illicit vaping products were substantial, cigarettes still accounted for the bulk of the illegal tobacco trade in the country, costing the government an estimated P141 billion, or $2.5 billion, in foregone revenues over the same two-year period.

This made the Philippines one of the hardest-hit markets in the Asean-6. Indonesia recorded the region’s largest revenue losses at $5.6 billion, while Malaysia also lost about $2.5 billion. (Logan Kal-El M. Zapanta © Philippine Daily Inquirer)

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