2FIRSTS | Philippine Lawmakers Push Bill to Close Vape Tax Loopholes
Philippine lawmakers are advancing a bill to harmonize vape taxes and close loopholes costing the government billions annually.Summary
Philippine lawmakers are pushing House Bill 5207 (HB 5207) to address disparities in excise tax rates on vapor products, specifically between nicotine salt and freebase nicotine. Currently, nicotine salt is taxed significantly higher (P60.20 per milliliter) than freebase nicotine (P6.95 per milliliter), leading to potential misdeclaration by importers to benefit from lower rates. Lawmakers estimate this loophole costs the government P14.8 billion annually. While industry groups support unified liquid taxation, they oppose taxes on vaping devices and hardware, arguing it would constitute double taxation. The bill also addresses the continued circulation of non-compliant vapor products despite the introduction of internal revenue stamps in 2024. Experts suggest a single tax rate would simplify administration and align Philippine policy with international standards.
(Source：2Firsts)
