Overview
- Distributors have circulated new lists showing retail packs broadly rising 20%–22%, with several mainstream brands now near or above 100 pesos.
- Examples reported to retailers include Marlboro at roughly 105–106 pesos and some variants at 108 pesos, while lower-cost brands also increase but remain cheaper.
- The tax change begins January 1, 2026, and many shops plan to reflect new prices between January 1 and 5 depending on inventory and restocking.
- Congress raised the ad valorem IEPS rate on cigarettes from 160% to 200% and lifted the specific quota to 0.8516 pesos per cigarette in 2026, with an official schedule rising to 1.1584 pesos in 2030.
- CIEP modeling projects cigarette sales will fall about 7.3% in 2026, with the average pack price rising and taxes accounting for roughly 73% of a pack’s value.