MANILA - Cigarette smuggling has already cost the government billions in lost revenues this year, the National Tobacco Administration (NTA) said on Wednesday.

NTA Administrator Belinda Sarmiento-Sanchez estimated that about P16 billion in potential revenues has already been lost so far this year to illicit trade, which covers smuggling and unregistered cigarettes.

She said revenue losses due to the illicit trade in tobacco products may even go up to P30 billion per year.

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Aside from the illicit trade, NTA said the government’s anti-smoking campaign and higher taxes on cigarettes are also affecting the tobacco industry. But the agency continues to urge farmers, who left the industry, to return to planting tobacco and focus on exporting.

“Campaign ng government sa anti-smoking syempre mahirap namin kalabanin yun,” said the NTA chief. “May iba na nag shift na ng crops. Ngayon we’re trying to convince them to go back to planting tobacco.”

According to the 2021-2022 data of NTA, the Philippines exports 53 percent of its tobacco, while 47 percent is sold to local manufacturers.

The top export destinations for Philippine tobacco are the US, Dominican Republic, Belgium, Indonesia and the UAE.

Michael Tan, Director of LT Group, which owns and distributes most cigarette brands in the Philippines, said the tobacco industry needs help as it is still benefiting millions of Filipino families.

Revenues from the sector, he said, help in infrastructure development, healthcare and education in tobacco-farming regions.

“The economic impact of tobacco farming extends beyond the farmers themselves as it supports a network of suppliers, traders, manufacturers involved in production and distribution of tobacco products,” said Tan.

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