ProGRESS and vape regress
The article critiques the DOF's ProGRESS bill, arguing its vape tax proposals would lead to revenue regression due to smuggling, and advocates for an optimal unitary rate.Summary
The article discusses the Department of Finance's ProGRESS bill, which includes tax relief, new sin taxes, and wealth taxes. The author attended a stakeholder briefing and shares insights from Congressional Committee on Ways and Means hearings on vape taxation. He argues against the dual tax rate on vape products, which leads to technical smuggling and low revenues. The article presents data showing that under the current dual rate, most vapes are declared as Freebase rather than Nicotine Salt, resulting in only P2.54 billion in revenue in 2025. He advocates for a unitary tax rate, proposing P10 per ml with annual increases, which he estimates would generate P8.4 billion by 2027 and up to P21.2 billion by 2030. He criticizes the DOF's proposal of P72.90 per ml as too high, warning it would encourage smuggling and cause revenue regression instead of progress. The author emphasizes the need to find an optimum tax rate to maximize revenue while minimizing illicit trade.
(Source：Philstar.com)
