Philippine Senate Panel Pushes Higher Vape and Tobacco Taxes

Philippines tobacco excise tax 2025

Senator Gatchalian pushes higher vape/tobacco taxes to curb youth use & smuggling, while health advocates oppose HB 11360’s broader impact.

A Philippine Senate panel, led by Senator Sherwin Gatchalian, is advocating for increased excise taxes on tobacco and vapor products to combat smuggling and rising vape use among adolescents. During a recent hearing on House Bill (HB) 11360, Gatchalian, chair of the Senate Committee on Ways and Means, stated, “We don’t believe the solution to curbing illicit trade will come from reducing taxes.” He highlighted the prevalence of smuggled vaping products reaching young people.

The proposed measure aims to amend the National Internal Revenue Code, setting an initial tax of P41 per pack of heated tobacco and P66.15 per milliliter for vapor products and cigarettes, with rates automatically increasing biennially. It also includes provisions for a single tax rate on all vapor products and an ad valorem tax on vaping devices to deter youth consumption, noting that nicotine salts in imported products are particularly appealing to minors.

However, the move has drawn criticism from health advocates, including the Sin Tax Coalition. They have dubbed HB 11360 the “Sin Tax Sabotage Bill,” fearing it will ultimately lower existing tax structures on cigarettes, despite Gatchalian’s stated focus on vape provisions. The coalition urges Gatchalian to file a separate bill for vape and heated tobacco tax hikes and to remove provisions that could reduce cigarette levies. They project the bill, as passed by the House, could lead to 1.86 million new smokers by 2035 and significant revenue losses, arguing that higher taxes are crucial for public health.

Matthew Ma
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