Philippine Urges Higher Taxes on Vapes Than Cigarettes
A top official from the Philippines’ Bureau of Internal Revenue (BIR) has advocated for imposing significantly higher excise taxes on vape products compared to traditional cigarettes. During a Senate Committee on Ways and Means hearing, BIR Assistant Commissioner Jethro Sabariaga argued that while cigarettes and heated-tobacco products could be taxed similarly, vape products warrant a much steeper levy.
Sabariaga explained that “one vape product is not the same as the consumption of one pack of cigarettes,” noting that vapes are consumed over a longer period, potentially leading to revenue loss for the government if taxed at lower rates. He highlighted that an average cigarette offers about 300 puffs, whereas even the lowest-puff vapes are labeled for 600 puffs. He believes higher taxes, making vapes more expensive, would deter youth purchasing, especially given data showing adolescent vape use jumped from 7.5% in 2021 to 40% in 2023.
Committee Chairman Senator Sherwin Gatchalian echoed concerns about the “dangerous stage” of youth vaping unknown chemicals. The BIR previously introduced mandatory excise stamps in 2023 to combat illicit vape trade, which saw declared vape imports surge from 11.2 million milliliters to 130.5 million in 2024. This proposal arises as the Senate discusses amending tobacco excise taxes amidst worsening illicit trade, contrasting with a House measure seeking to lower current tobacco tax rates. Gatchalian maintained that lowering taxes is not an effective solution to illicit trade, emphasizing enforcement instead. Philip Morris International-Fortune Tobacco Corp. also proposed an alternative “odd-even” tax hike scheme during the hearing.