The province of Palawan has recorded the highest rate of illicit tobacco sales in MIMAROPA in the last quarter of 2024, with illegal trade accounting for 54.4% of all tobacco transactions, latest industry and third-party figures show.
Rural areas in Palawan experienced a dramatic increase from 28% in the second quarter of 2023 to this new high in end 2024, while urban areas saw a slight decrease, dropping from 26.9% to 25.3% over the same timeframe.
The data reveal that in 2024, over half the tobacco products purchased in Palawan were smuggled, counterfeit, or acquired unlawfully.
Both industry and third-party data consistently cite Palawan as the leading province for illegal cigarette trade within MIMAROPA during 2023 and 2024. Final data for the year 2025 have yet to be made available.
Palawan capital Puerto Princesa has 49% illicit trade incidence while tourist spot El Nido recorded a much higher 68% illicit tobacco incidence.
MIMAROPA comprises of Occidental Mindoro, Oriental Mindoro, Palawan, and Romblon provinces. After Palawan, Occidental Mindoro reported a 16.3% incidence rate for illicit tobacco in the fourth quarter of 2024; Romblon followed with 4.4%, and Oriental Mindoro had the lowest at 4%.
Among the types of illegal cigarettes circulating in MIMAROPA, majority or 18.5% are classified as “illicit whites,” while counterfeits or fakes represent just 0.5%.
“Illicit white” cigarettes—sometimes referred to as “cheap whites”—are lawfully produced in one country but intended for smuggling and tax evasion in another.
Nationally, estimates suggest the illicit tobacco market now represents 21.3%, meaning roughly one out of every five cigarettes sold in the Philippines originates from illegal sources.
In early 2026, President Ferdinand “Bongbong” Marcos Jr. ordered a widespread crackdown against illicit tobacco trading, with government calculations indicating annual revenue losses between P60 billion and P100 billion.
Philippine National Police (PNP) chief Gen. Jose Melencio Nartatez Jr. has previously urged the public to report the sale of illegal cigarettes retail outlets across the country.
“As part of the nationwide crackdown, the PNP is calling on citizens to act as the ‘eyes and ears’ of the police,” Nartatez has said.
Interior Secretary Jonvic Remulla had also warned retailers that the manufacturing, transportation, and selling of illegal cigarettes are against the Anti-Agricultural Economic Sabotage Act.
Remulla said that even small sari-sari store owners could be charged under the new law, which could escalate into a non-bailable offense. Republic Act No. 12022, known as the Anti-Agricultural Economic Sabotage Act, was enacted in 2024 to combat various agricultural crimes, including smuggling, hoarding, profiteering, and cartel operations.
The new law classifies tobacco as among the protected agricultural products and denies bail for offenders who could face possible life imprisonment upon conviction.
