Govt agencies support simplified vape tax
Government agencies in the Philippines support a simplified, single tax rate for vapor products to improve revenue collection and address enforcement issues.Summary
The Philippine government is leaning towards adopting a single tax rate for vapor products, as discussed during a House Committee on Ways and Means hearing. Representatives from the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), Department of Trade and Industry (DTI), Department of Health (DOH), and Food and Drug Administration (FDA) all voiced support for simplifying the excise tax system. The current two-tier system, which taxes nicotine salt vapes significantly higher than freebase nicotine products, has led to misdeclaration, loopholes, and an estimated P14.84 billion in lost revenue. Officials from BIR and BOC admitted they lack the technical capacity to differentiate between the two types of nicotine, and data shows a shift towards reporting freebase nicotine products to take advantage of the lower tax rate. The DOH and FDA also noted a lack of conclusive evidence that nicotine salt is more harmful than freebase nicotine, questioning the justification for the tax disparity.
(Source：The Manila Times)
