Phillipines: Market data & legal analysis of the nicotine sector

19th February 2025: Philippines: The Health Care Providers Alliance Against Covid (HPAAC) has called on the Senate to reject bill 11360, which seeks to replace the annual 5% hike on tobacco and vaping excise taxes with a staggered increase.
18th February 2025: Philippines: The Philippine Tobacco Institute (PTI), a trade association, supports a tax proposal that would replace the annual 5% hike on tobacco and vaping excise taxes with a staggered increase, media reports. We understand it concerns House Bill 11360, which aims to rationalise excise tax rates on tobacco and vaping products. The bill imposes structured tax increases: a 2% increase every even-numbered year, starting in 2026, and a 4% increase every odd-numbered year, beginning in 2027, with the increases continuing until 2035. The aim is to curb revenue losses from illicit trade. The House of Representatives (lower chamber of parliament) approved the bill in the third and final reading at the beginning of February. We understand that the Senate would need to approve the bill next.
13th February 2025: Philippines: The Department of Trade and Industry (DTI) has reminded sellers of vaping and heated tobacco products (HTPs) that they are required to verify the age of buyers, ensuring that customers are at least 18 years old, by asking for a valid ID that includes a photo and date of birth.
6th February 2025: Philippines: During a speech at the Bureau of Internal Revenue (BIR) National Tax Campaign Kick-off 2025, president Ferdinand R Marcos Jr. voiced his support for the fight against the illicit trade of cigarettes and vaping products, emphasising that anyone who cheats on taxes will be held accountable.
4th February 2025: Philippines: Yesterday (3rd February), the House of Representatives (lower chamber of parliament) approved House Bill 11360, which aims to rationalise excise tax rates on tobacco and vaping products, in the third and final reading, media reports. The bill imposes structured tax increases: a 2% increase every even-numbered year starting in 2026 and a 4% increase every odd-numbered year beginning in 2027, continuing until 2035. The aim is to curb revenue losses from illicit trade. We understand that the Senate would need to approve the bill next.
4th February 2025: Philippines: Senator Win Gatchalian, chair of the Senate (upper chamber of parliament) Ways and Means Committee, has criticised online shopping platforms for enabling the sale of illicit tobacco and vaping products. The senator urged the platforms to improve their product filtering to prevent these items from reaching youth.
4th February 2025: Philippines: Yesterday (3rd February), the House of Representatives (lower chamber of parliament) approved House Bill 11286 – which seeks to strengthen excise tax administration and eliminate revenue losses from the illicit trade of tobacco and related products – in the third and final reading media reports. The bill introduces a mandatory track-and-trace system for the manufacturing, importation, storage, removal, distribution and sale of all tobacco and related products, including vaping products. We understand that the bill will now need to be approved by the Senate.
30th January 2025: Philippines: The National Tobacco Administration (NTA) has highlighted that unpaid taxes from the tobacco industry are not only leading to declining government revenue but also negatively impacting the livelihoods of farmers and their families. This loss of revenue is affecting funding for essential services like healthcare. The NTA has asked for stricter law enforcement and improved collaboration among local governments.
30th January 2025: Philippines: The Sin Tax Coalition, a campaign to secure the passage of a high tax on products such as tobacco, urged the Senate (upper chamber of Congress) Ways and Means chair Sherwin Gatchalian not to suspend the yearly 5% increase in excise tax rates on tobacco and related products. During a committee hearing, Gatchalian recommended measures to combat illicit trade, such as involving local government units and improving tracking systems for tobacco and e-cigarettes. However, he did not support the proposal to suspend the annual 5% increase, which is currently lodged in the House of Representatives (lower chamber) through House Bill 11279.
29th January 2025: Philippines: More members of the House of Representatives, the lower chamber of parliament, call for the approval of Bill 11279, media reports. The bill was recently proposed to temporarily suspend the annual increase of 5% in tobacco excise taxes for one year. This measure seeks to combat the growing illicit tobacco trade and its negative impact on tax revenues. The bill also reportedly addresses issues with mislabelled vaping products that exploit tax regulations by proposing a unified tax rate for all vaping products to ensure accurate tax collection.
28th January 2025: Philippines: The Department of Agriculture (DA) has announced its commitment to addressing illicit trade in the local tobacco industry due to its harmful effects on government revenue and farmers’ livelihoods, media reports. Agriculture secretary Francisco Tiu Laurel spoke about the DA’s commitment the during the Second International Tobacco Summit yesterday (27th January).
22nd January 2025: Philippines: The National Tobacco Administration (NTA) supports more decisive actions to combat the illegal trade of tobacco and vaping products, media reports. “The illicit tobacco trade is a significant challenge, adversely impacting government revenues, public health, national security, and the livelihoods of the Filipino farmers,” said Belinda Sanchez, the administrator and CEO of the NTA.

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