Consumer groups wary of vape tax loophole
Consumer groups urge Congress to close a vape tax loophole that lets operators misdeclare products and evade taxes.Summary
Consumer advocacy groups CitizenWatch Philippines and Progreso Para sa Bayan have warned that the Philippine vape excise tax system’s split between nicotine‑salt and freebase products creates a large tax gap—P602 for a 10 mL nicotine‑salt cartridge versus P69.46 for a freebase cartridge—making it almost nine times higher. This disparity incentivises operators to misdeclare products and evade taxes, undermining revenue collection. The groups urged Congress to replace the two‑tier structure with a single, uniform tax rate for all vapor products, arguing that a simpler rule would reduce enforcement complexity, close loopholes, and better align with fiscal objectives. Several bills are pending before the House Ways and Means Committee, which has already expressed support for a unified rate.
(Source：Philstar.com)
