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Smuggled cigarettes proliferate in Mindanao; Davao City Council starts probe

By  Antonio L. Colina IV

|  October 13, 2025 - 10:09 pm

DAVAO CITY (MindaNews / 13 October) — For nearly 20 years now, Lita, a vendor along a main street in Davao City, has been earning a living selling a variety of goods to support her family, especially her youngest child who is in Grade 11 in a public school. 

At her modest stall tucked just outside an old building that once housed a bustling billiard hall, she peddles noodles, coffee, sardines, juice, and cigarettes day and night.

She sells not only the popular government-regulated tobacco products, but also Bosqu, Walton, Bros, Cannon, and Greenhill, the counterfeit brands reportedly smuggled from Malaysia and Indonesia.

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The City Council of Davao is set to conduct an investigate, in aid of legislation, on the extent and impact of the sale of smuggled cigarettes and electronic cigarettes in the local markets here. CANVA image

Her cigarettes sell regardless of brand, but she noted that some customers prefer the cheaper, smuggled or counterfeit products over the more expensive branded ones.

The increasing cost of cigarettes, she said, pushes some smokers to buy smuggled or counterfeit brands as they can get twice as much for their money compared to government-regulated brands.

The smuggled cigarettes sell for P5 per stick, half the price of the branded ones like Marlboro and Fortune, which now sell at P10 each.

“Mao ang mahalin kay mao pud ang maabot sa mga tao kay tungod krisis. Bisan krisis, ang mga tao manigarilyo man gihapun (The cheaper ones are what people can afford to buy because we are in a crisis. But even during a crisis, people still smoke, so they buy whatever they can afford),” she said.

These days, she said, even counterfeit cigarettes are becoming harder to find due to stricter government regulation on smuggled tobacco goods.

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Counterfeit tobacco products are sold for as low as P5 per stick alongside popular government-regulated brands in a stall in Davao City. MindaNews photo by ANTONIO L. COLINA IV

When her supply runs out, restocking has become increasingly difficult. She recalled that a pack of fake cigarettes used to cost around P50, but some of them increased to as much as P75 per pack.

“Dugay ko walay stock kay walay mapalitan kay ginadakop ang ingon ana… Karon walay klarong stock kay sige dakop. Ambot kung naa pa bay stock ana (I don’t have new stocks because there’s nothing available anymore. Right now, there’s no stock because authorities keep confiscating them. I’m not even sure if there’s any left),” she said.

Even as she is selling cigarettes, Lita said she is aware of the health risks associated with smoking tobacco, whether branded or smuggled, and often warns her children and relatives that each stick could be laced with hazardous chemicals that would cost them their lives.

8 of 10 

On October 7, the City Council of Davao passed on first reading a proposed resolution to investigate, in aid of legislation, the extent and impact of the sale of smuggled cigarettes and electronic cigarettes in local markets here.

Councilor Rachel Zozobrado of the city’s 3rd District, chair of the Committee on International Relations and the proponent of the proposed resolution, said the proliferation of counterfeit and illicit cigarettes is alarming, as these are becoming increasingly rampant and are now conveniently accessible to cigarette smokers in public markets, stalls, and even sari-sari stores.

“Reports show a disturbing increase in the sale of illicit and counterfeit cigarettes and e-cigarettes being openly sold in markets and stores without BIR (Bureau of Internal Revenue) tax stamps, without health warnings, without regulations,” she said.

Zozobrado cited the results of ‘Kantar 2024 Open Pack Survey” which indicated that Mindanao accounted for 50% of the illicit incidence, followed by Luzon at 7.4% and Visayas at 4.8%. Mindanao’s illicit incidence significantly exceeds the national average of 18.2%.

Results of the survey are not publicly available online but Zozobrado said it showed that eight out of 10 cigarettes sold in many areas in Mindanao come from illegal sources.

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Councilor Rachel Zozobrado of the city’s 3rd District, proponent of the probe on the extent and impact of the sale of smuggled cigarettes and electronic cigarettes in the markets of Davao City. MindaNews photo by ANTONIO L. COLINA IV

Zozobrado added that Mindanao registered the highest incidence due to the existing trade routes and its proximity to Malaysia and Indonesia where smuggled tobacco products allegedly come from.

Citing the survey, she said authorities have identified 30 trade routes in the Southern Philippines, and most of the stocks entered Mindanao via sea from neighboring Sabah in Malaysia, and Indonesia, and distributed and sold in “wholesale, retail, and even house to house.”

Among the provinces in Mindanao, Lanao del Sur registered the highest illicit incidence at 94.2%, followed by Maguindanao at 73.2%, Davao de Oro at 69.6%, Sarangani at 68.2%, and Davao del Sur at 44.7%.

54% illicit incidence in Davao City 

In Davao City, which passed the country’s first anti-smoking ordinance 23 years ago, Zozobrado said the illicit incidence was estimated at 54%, indicating that illegal tobacco products have substantially penetrated local markets.

Of Davao City’s 182 barangays, the sale of smuggled tobacco products was most prevalent in Maa, which recorded an illicit incidence of 88%, followed by Mintal at 81%, Catalunan Grande at 80%, Calinan at 78%, and Talomo at 66%, Zozobrado said, again citing the survey. 

Among the cities and municipalities in Davao del Sur, the highest incidence was recorded in Sulop at 93% and Malalag at 90%.

She said counterfeit tobacco products have fake or lack BIR tax stamps, have no health warning and no information on the address of the manufacturer or importer on the side panel of the cigarette pack.

Zozobrado had earlier said that once the inquiry pushes through, she hopes that the City Council will revisit the anti-smoking ordinance or introduce a new measure to enforce stricter regulations to address the problem of illegal cigarettes in Davao.

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The Kantar Open Pack Survey 2024 identifies areas in Mindanao where the sale of counterfeit cigarettes is rampant. Courtesy of Councilor Rachel Zozobrado

“When illegal trade flourishes, when counterfeit products flood our markets, and when public health is sacrificed for profit and economic gain — it is not only our laws and ordinances that are violated; it is the very spirit of Davao that is betrayed,” she said.

As early as 2002, the City Council passed the Comprehensive Anti-Smoking Ordinance when former President Rodrigo Duterte was still mayor of this city. A decade later, a subsequent measure, the New Comprehensive Anti-Smoking Ordinance of Davao City, was legislated to enforce stricter regulations.

“We were the first city in the Philippines to implement a comprehensive anti-smoking ordinance — a bold and visionary policy enacted during the term of then-mayor Rodrigo Roa Duterte. The landmark ordinance became a national model, inspiring other local governments to follow,” she said.

“Unite and act with dispatch” 

In 2012, the city received its third Red Orchid Award from the Department of Health, an award system designed for local government units and other government agencies, and hospitals to actively implement the 100% Tobacco Free Policy.

“We cannot allow illicit trade to tarnish that reputation or erode the legacy of former President Duterte. For indeed, illicit trade undermines the legacy of FPRRD  (Former President Rodrigo Roa Duterte) and that of Davao City.  It strikes at the very heart of our identity — a community founded on discipline, fairness, and integrity,” she said.

She urged her fellow councilors to “unite and act with dispatch,” saying “to delay is to allow others to destroy what we have built over decades of hard work and sacrifice.”

“This is not only about enforcing our laws — it is about defending our city’s integrity, protecting the weak, and upholding the kind of Davao our children deserve. Let us show that in the city, no child’s health is expendable, and no life is too small to protect,” she said.

Citing the survey, Zozobrado said top consumers of counterfeit cigarettes and e-cigarettes are those aged 19 to 24 years old.

Illness and economic loss 

As local markets are flooded with unregulated and unsafe tobacco products, low-income families usually bear the heavy cost of illness and economic loss, the councilor noted. 

“The easy availability of cheap, illicit cigarettes undermines years of government effort, especially that of our beloved city, to reduce smoking and weakens the enforcement of our anti-tobacco policies,” she said.

She noted that these products are cheaper and aggressively marketed, especially to minors and young adults, who are drawn “by deceptive marketing and low prices” averaging at P4.50 per stick, compared to ₱8.56 for regulated brands.

“Worse, there are reports that some of these illicit cigarettes are being sold at only P2.50 per stick – a price so low that it clearly targets the young and the less fortunate, making cigarettes readily accessible and dangerously affordable to those who can least afford their consequences,” she said.

According to the survey, the most popular reason for buying and consuming illicit cigarettes revolves around price and budget because smuggled tobaccos “are cheaper and sometimes are the only option for those who do not have a budget for the licit product.”

It added that counterfeit products are cheaper as they are “untaxed” and manufactured in an “unregulated environment.”

The survey noted that consumers “are cautiously choosing to buy illicit products because of a significant price difference and availability.”

Alarming

Zozobrado said among the top illegal brands available in local markets are Bosqu, Greenhill, Wilson, Cannon Menthol, New Orleans, D&J, Walton, Walter, New Aris, New Berlin, Bros, and Maharlika, which are smuggled from Sabah in Malaysia and Indonesia.

“These illegal products target the most vulnerable – our children, our students, our workers, and the financially challenged members of our society – those whose health and well-being depend most on the government’s vigilance and care,” she said.

Once the proposed measure is passed, a joint investigation into the existence and proliferation of illegal cigarettes will be conducted by the Committee on Trade and Commerce and the Committee on Health, Zozobrado added. 

Zozobrado said the sale of smuggled cigarettes is alarming and could pose even greater health risks to people than government-regulated brands because “counterfeit cigarettes are manufactured without oversight, often laced with unknown and more toxic substances, increasing the risk of disease and premature death.”

The sale of smuggled products, she added, also deprives the government of revenues from excise tax collections.

Excise tax collections from so-called “sin” products such as sweetened beverages, alcoholic drinks, and cigarettes serve as a major source of funding for the government’s Universal Health Care program.

“Every stick of counterfeit cigarette sold is a theft from public health, a betrayal of honest business, and a mockery of Davao’s reputation as a disciplined, law-abiding city,” she said.

But Zozobrado emphasized that it is no longer just an economic issue but a “public health emergency and a moral crisis.” 

Intensifying efforts

On July 5, 2025, the Philippine National Police regional office reported the seizure of a total of 431 boxes of smuggled cigarettes amounting to P8.62 million, one pistol, and two heat-sealed transparent plastic sachets containing suspected shabu with an estimated value of P5,000 in front of a warehouse in Purok 19, Cabanes Road, Barangay Ilang, Davao City.

Ensign Winston Gonzales, spokesperson for Coast Guard District Southeastern Mindanao (CGDSEM) told MindaNews on Thursday that maritime personnel detailed to all its substations are intensifying their efforts to secure the Davao Gulf and crack down on smuggling activities.

The CGDSEM covers the area of Surigao del Sur, Davao Region, and parts of Soccsksargen.

“We are now doubling our efforts to end illicit activities,” he said.

Gonzales explained that as of October 9, the Coast Guard has not detected any illegal activities off the coast of Davao City but pointed out that it is closely monitoring the shores of the coastal towns of Davao Occidental and Davao Oriental, which have been identified as entry points for undocumented cigarettes into the Davao Region.


Gonzales saidthe smuggled tobacco products in the local markets could have entered the city by land.

He said the routes for the transport of undocumented cigarettes include not only maritime channels but also land-based routes.

“The Philippine Coast Guard and our counterparts are continuously coordinating to strengthen intelligence efforts,” he said. (Antonio L. Colina IV / MindaNews)