Consumer advocates call on gov't to weigh in on new vape tax

Consumer advocates are calling on the government to reconsider imposing higher excise taxes on vape products.

In a news release on Thursday, Philippine Tobacco Harm Reduction Advocates (PHILTRA) coalition said participants, during its 2nd National Summit on Nicotine and Harm Reduction in Pasay City, said that “taxes on smoke-free alternatives should not automatically be the same as those on combustible cigarettes, particularly if policymakers want to encourage adult smokers to switch to less harmful alternatives.”

E-liquids currently are subject to different tax rates depending on whether they contain salt nicotine or freebase nicotine.

Meanwhile, the DOF is proposing a unified excise tax of P72.93 per 2 milliliters or 2 grams on e-cigarettes and heated tobacco products, on top of a P150 excise tax per device.

PHILTRA said participants of its summit recognized the government’s need to raise revenues, but cautioned that using smoke-free alternatives primarily as a source of additional tax revenue could come at the expense of giving smokers another option to move away from cigarettes.

Likewise, during the summit, the group said stakeholders took note of the relationship between taxation, affordability, and illicit trade.

In particular, the group said illicit tobacco and vapor trade was estimated to have drained P141 billion from government coffers in foregone excise tax revenues across 2024 and 2025.

PHILTRA warned that levying heavier taxes on legal alternatives without cracking down on illegal goods will only drive consumers toward cheaper, unregulated products.

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—Ted Cordero/RF, GMA News