Advancing Tobacco Taxation in Southeast Asia: Addressing Evidence and Action
60.9 billion From 1998 to 2018, about 60.9 billion illegal cigarette sticks were produced and sold in the Philippines, representing around 10% of the total cigarette market. A 2009 report identifies the Philippines among the top 10 countries worldwide with the largest illicit cigarette consumption.
While Southeast Asia has witnessed advances in the adoption of tobacco taxes, the evasion of such taxes through counterfeiting, smuggling and illicit production remains a significant challenge. Following a significant tax increase through implementation of the Sin Tax law, a decline was seen in both legal sales and self-reported consumption. Still, the study found no evidence of a positive relationship between tobacco taxes and the size of the illicit cigaret market int he Philippines.
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