BATANGAS CITY — The seizure of PHP1.1 billion worth of smuggled cigarettes in Batangas City has raised fresh concerns within the business sector, as authorities warned that large-scale illicit trade continues to undermine legitimate cigarette manufacturers operating in the province.
The Philippine National Police (PNP) said the contraband was uncovered during an anti-carnapping operation on New Year’s Eve, after operatives of the Highway Patrol Group (HPG) tracked down a stolen vehicle in Sitio Singko, Balete, Batangas City. While inspecting the area, police discovered several trucks and container vans loaded with smuggled cigarettes.
Acting PNP chief Lt. Gen. Jose Melencio Nartatez said a full-scale investigation is underway to identify those behind the smuggling operation, noting its significant economic repercussions.
“These smugglers are depriving the government of billions in tax revenues and unfairly competing with legitimate businesses that comply with the law,” Nartatez said. He stressed that Batangas-based cigarette manufacturers, which employ thousands of workers and contribute substantial excise taxes, are among the sectors most affected.
Industry stakeholders have long warned that the influx of untaxed cigarettes distorts pricing in the market, erodes sales of locally manufactured products, and discourages further investment in regulated tobacco manufacturing hubs such as Batangas. Legal manufacturers shoulder high excise taxes, regulatory compliance costs, and labor expenses—burdens that smugglers evade entirely.
Authorities said the confiscated cigarettes could have flooded regional markets at significantly lower prices, weakening demand for legally produced brands and threatening the sustainability of local factories and their supply chains, including farmers, logistics providers, and retailers.
No arrests were made during the Batangas operation, but the PNP said it is working closely with the Bureau of Customs and other agencies to trace the origin and intended distribution of the smuggled goods. Follow-up operations are ongoing.
Nartatez emphasized that the case goes beyond law enforcement and has direct implications for the business environment. “This is about protecting legitimate industries, safeguarding jobs, and preserving fair competition,” he said, adding that police have been instructed to file airtight cases against those responsible.| – BNN Integrated News
