Lawmakers push bill to plug tax loopholes on vapes
Filipino lawmakers are proposing a bill to standardize taxes on vapor products to recover billions in lost revenue.Summary
Filipino lawmakers are advancing a bill, HB 5207, to unify the excise tax system for vapor products, aiming to recover an estimated ₱14.8 billion in annual revenue lost due to tax loopholes. Currently, nicotine salt is taxed significantly higher than freebase nicotine (₱60.20 vs. ₱6.95 per milliliter), incentivizing misdeclaration and tax evasion. The bill seeks to eliminate this disparity by applying a single tax rate to all vapor products, regardless of nicotine type. Proponents argue this will level the playing field for legitimate businesses, discourage illegal trading, and ensure fair competition. Concerns have been raised about the lack of technical capacity to differentiate between nicotine types and the continued availability of non-compliant products despite regulations. Industry stakeholders, like the Philippine E-cigarette Industry Association (PECIA), support tax unification but advocate against taxing vaping hardware, emphasizing harm reduction principles and risk-proportionate taxation.
(Source：Manila Bulletin)
