Philippines BIR to Align Taxes on Tobacco and Vape Products

The Bureau of Internal Revenue (BIR) plans to align taxes on vape products and traditional cigarettes this year to increase revenue collection, according to BIR Commissioner Romeo Lumagui Jr. During the BIR Region 7B Tax Campaign Kickoff, Lumagui told reporters, “I think it will happen this year. There will be an improvement, and the drag down of excise taxes on tobacco and vape will not be that big.”

Currently, the Philippines imposes a tax of P63 per pack of 20 cigarettes, while vape products are subject to higher taxes, with P109.20 for 2 ml salt nicotine pods and P63 for every 10 ml of classic nicotine liquids. The BIR has been seeking a more balanced tax rate for these products to maximize collections from both industries.

From January to November 2024, the government collected a significant amount of taxes from the tobacco and vape industries, with P128.98 billion from tobacco and P1.35 billion from vape products. Aligning tax rates for both products has become a priority for the BIR to further increase revenue from these sectors.

The BIR’s decision to align taxes on tobacco and vape products demonstrates its commitment to optimizing revenue collection from these industries. By creating a more balanced tax structure, the bureau aims to reduce the disparity in tax rates between traditional cigarettes and vape products, which has been a concern for both the government and industry stakeholders.

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.

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