Consumer groups: Vape tax loophole a gift to illicit traders
Consumer groups urge Congress to close a tax loophole allowing illicit vape traders to evade taxes.Summary
Consumer advocacy groups in the Philippines, including CitizenWatch Philippines and Progreso Para sa Bayan, have called on Congress to eliminate a tax loophole in the vape excise system. The current structure taxes nicotine salt vape products at P602 per 10ml, while freebase nicotine products are taxed at only P69.46, creating a P532.54 disparity. This difference incentivizes misdeclaration and complicates tax enforcement, as operators can exploit the unverifiable distinction between the two formulations. Following a House Committee on Ways and Means hearing on Aug. 11, 2026, several bills proposing a unified excise tax rate for all vapor products were discussed. Officials, including Rep. Miro Quimbo and Bureau of Internal Revenue representatives, support simplifying the tax structure to reduce evasion and increase revenue. The groups emphasize that regulatory complexity enables illicit trade, and a streamlined system would allow enforcement agencies to focus on actual tax evaders rather than product classification.
(Source：Philstar.com)
