The Bureau of Internal Revenue (BIR) has updated floor prices of cigarettes, heated tobacco, vaporized nicotine, and non-nicotine products.
Based on a memorandum circular issued May 5, the new floor price for a pack of cigarettes is P 114.60 while a ream now costs P1,146.00.
The minimum price of a pack of heated tobacco products was also adjusted to P120.40.
For vapor products, a pod of nicotine salt now has a minimum price of P200 for 2ml and P354.97 for 4ml. A bottle of conventional freebase or classic nicotine also costs at least P179.20 (10ml), and P403.20 (30ml).
According to the BIR, the new floor price or minimum retail price was based on the sum of production cost or the total landed cost, and the total of excise tax and value-added tax (VAT) of the tobacco product.
BIR Commissioner Romeo Lumagui Jr. warned that selling of tobacco products at a lower price than the combined excise taxes and VAT imposed under the law is prohibited.
Any violators shall be charged with the corresponding fine under the pertinent provisions of the National Internal Revenue Code of 1997, as amended.
“Any seller offering below these floor prices is not paying their proper taxes. They are illegal traders. Their warehouses and stores will be raided. The BIR will file criminal cases against these illegal tobacco and vape traders,” Lumagui said in a statement on Thursday. —Giselle Ombay/KBK, GMA Integrated News