THE HOUSE ways and means committee is looking at imposing a moratorium on the yearly excise tax rate increase over tobacco products in a bid to strengthen the government’s tax administration on cigarettes and to address smuggling.
“The scheduled yearly increase shall not apply for the period effective January 1, 2026, until December 31, 2026… provided that the 5% increase shall again be imposed beginning January 1, 2026, and every three years thereafter,” according to the unnumbered substitute bill obtained by BusinessWorld.
The Philippines applies an excise tax rate of P63 per pack of 20 cigarettes while vape products are levied with a tax of P109.20 for two milliliter (mL) salt nicotine pods and P63 per 10 mL tax for classic nicotine products, according to the Bureau of Internal Revenue (BIR).
The BIR has collected P130.91 billion in tobacco excise taxes from January to November 2024, well behind the pace needed to hit the P185.34 billion target last year.
Meanwhile, Albay Rep. Jose Ma. Clemente S. Salceda said the House ways and means panel is looking at rationalizing the excise taxes on tobacco products by levying an additional P8 tax per 2 mL vape pods.
“There will be an attempt to rationalize taxes on vapes and cigarettes,” Mr. Salceda, panel chairman, told reporters. — Kenneth Christiane L. Basilio
