Japan Tobacco backs unified vape tax

Japan Tobacco International (JTI) has endorsed the Department of Finance's (DOF) proposal to unify excise taxes on e-cigarette liquids in the Philippines, arguing it would close a loophole exploited by illicit vape traders. JTI Philippines official Shaiful Mahpar explained that smugglers falsely declare salt nicotine as freebase nicotine, which is taxed at a lower rate, and customs officers cannot visually distinguish between the two without laboratory testing. The DOF has proposed a unified excise tax of P72.90 per vape product subject to a 5-percent annual increase, applying to every milliliter of salt nicotine, 2 milliliters of freebase liquid, and packs of 20 heated tobacco sticks, along with a P150 excise tax on vape devices and novel tobacco products. The measure is projected to generate P8.26 billion annually and reduce freebase consumption by 128 million milliliters by 2030. Citing a 2025 Euromonitor International study, JTI estimated that the Philippine government lost approximately P118 billion in revenue from illicit cigarettes and P23 billion from illegal vape products in 2024 and 2025. JTI Anti-Illicit Trade Operations regional director Valentin Dinca emphasized that tax reform must be accompanied by effective enforcement, calling for closer cooperation among customs and law enforcement agencies across the region. He identified Malaysia and Indonesia as transit points for illegal shipments entering the Philippines, and also linked China, the United Arab Emirates, Vietnam, Indonesia, and Cambodia to illicit tobacco supply routes.

(Source：The Manila Times)