Vape stakeholders urge balanced taxes to boost collection, curb illicit trade

Inquirer
Stakeholders advocate for balanced vape taxation to increase revenue and reduce illicit trade in the Philippines.

Summary

Philippine lawmakers and industry experts advocate for balanced excise taxes on vape products to boost government revenue and curb illicit trade. During a House Committee on Ways and Means hearing, proposals like the Vape Tax Unification Bill (HB 5364) and HB 10289 were discussed. HB 5364 aims to unify tax rates for nicotine salt and freebase products, projecting P6 billion annual collections by 2027 and reducing illicit trade to 10% by 2028. HB 10289 proposes a single P15-per-milliliter tax rate starting in 2027, increasing 5% annually. The Philippine E-Cigarette Industry Association (Pecia) supports a uniform rate but warns against excessive taxation that could shrink the legal market. Stakeholders emphasize risk-based taxation, citing Public Health England data that e-cigarettes are 95% less harmful than smoking. Concerns about youth access and enforcement of existing laws like RA 11900 were also raised. Experts urge policymakers to assess the illicit market size before setting tax rates to avoid revenue loss and ensure compliance.

(Source:Inquirer)

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