Phillipines: Market data & legal analysis of the nicotine sector

3rd December 2024: Philippines: Senator Sherwin Gatchalian from the majority bloc Nationalist People’s Coalition party has filed Senate Resolution 1243, calling for an investigation into revenue erosion due to the smuggling of excisable items, such as vapes and tobacco products. Citing a Department of Finance report, the senator showed the government is losing PHP52bn (€844m) annually in potential revenue from the smuggling of vape and tobacco products alone.
22nd October 2024: Philippines: The Bureau of Internal Revenue (BIR)'s assistant commissioner Jethro M. Sabariaga told the press that the BIR is likely to miss its PHP362.2bn ($6.2bn) excise tax collection goal this year due to declining demand for tobacco products. The commissioner said that a shift to vape products is one of the reasons. “So, a cigarette smoker shifting to vape, who usually consumes 10 to 15 packs of cigarettes a month, will probably just buy one vape product for the month, or worse, one for two months,” he said. He added that the BIR lost around PHP7.2bn ($124m) in potential revenue from seized tobacco and vape products in the first half of 2024.
11th October 2024: Philippines: Jaime Fresnedi, a member of the House of Representatives from the majority bloc Liberal Party, has filed a bill to amend the Vaporised Nicotine and Non-Nicotine Products Regulation Act (RA 11900). The bill raises the minimum age for sales of vapes and heated tobacco products (HTPs) from 18 to 21 and all age-related requirements to 21. It also bans online sales of these products and changes the competent authority from the Department of Trade and Industry to the Food and Drug Administration. Child Rights Network (CRN) Philippines, a child rights advocacy group, supported the bill.
9th October 2024: Philippines: President Ferdinand Marcos Jr. has signed into law the Anti-Agricultural Sabotage Act (Republic Act 12022), which provides a definition of smuggled tobacco – explicitly including heated tobacco products (HTPs) – that does not comply with laws and requirements set by the Bureau of Internal Revenue (BIR), such as products without registration, proper health warnings, fiscal markings and tax stamps, and products that are at a price 30% below the Daily Price Index. An anti-vaping lobbying group has protested that adding tobacco in the Anti-Agricultural Economic Sabotage Act alongside essential food items runs contrary to the public health message authorities should be broadcasting.
3rd October 2024: Philippines: Following the publication of amendments to the Implementing Rules and Regulations of the Republic Act 11900 (Vaporized Nicotine and Non-Nicotine Products Regulation Act), which regulates e-cigarettes, heated tobacco and novel tobacco products, the Department of Trade and Industry (DTI) published a press release reminding all product manufacturers and importers to apply for product registration and certification, and stating that currently there are ten Philippine Standards licences issued, although three licences are suspended.
30th September 2024: Philippines: According to our compliance calendar, the Bureau of Internal Revenue (BIR) revenue regulations 16-2024, which updates floor prices of heated tobacco products (HTPs), enters into force today. As a reference, the regulations set a PHP60.11 ($1.10) floor price for a 20-stick pack of heated tobacco sticks. The floor prices take into consideration the content of the packaging, production cost, excise tax from 2024, and value-added tax (VAT). The floor prices set in the regulation are only to be used “as reference for taxation purposes in the absence of other documents as to the actual price of the product that is higher than the identified floor price”.
30th September 2024: Philippines: The Department of Trade and Industry (DTI) has published amendments to the Implementing Rules and Regulations of the Republic Act 11900, which regulated e-cigarettes, heated tobacco and novel tobacco products. It amends the “product registration” definition, which is now a certificate issued by the DTI's Office for the Special Mandate on Vaporized Nicotine and Non-Nicotine Products, their Devices, and Novel Tobacco Products (OSMV), and the “online trade” definition. Among other measures, vaping areas must be approved by the OSMV and a monthly list of brands that are eligible to be sold online must be maintained by the OSMV. The order will take effect upon its publication in at least two newspapers in general circulation.
19th September 2024: Philippines: The Bureau of Internal Revenue (BIR) has issued revenue regulations 16-2024, which updates floor prices of heated tobacco products (HTPs). As a reference, the regulations set a PHP60.11 ($1.10) floor price for a 20-stick pack of heated tobacco sticks. The floor prices take into consideration the content of the packaging, production cost, excise tax from 2024, and value-added tax (VAT). The floor prices set in the regulation are only to be used “as reference for taxation purposes in the absence of other documents as to the actual price of the product that is higher than the identified floor price”. The regulations enter into force on 30th September.
5th September 2024: Philippines: The Department of Trade and Industry has issued department order 24-154. The order defines elements of the offences drawn up in Republic Act 11900, which regulates e-cigarettes, heated tobacco and novel tobacco products. It also sets definitions of violations of packaging and health warning rules, product restriction rules, minimum age sale and purchase, online trade and sales restrictions, among others.
30th July 2024: Philippines: The Supreme Court has affirmed its 2021 decision ruling that the Food and Drug Administration (FDA) has regulatory authority over the health aspect of tobacco products, enabling the Department of Health (DOH) and the FDA to regulate them. The DOH lauded the decision and said it recognises this as “a significant victory for public health. It is a decisive step against the tobacco industry’s attempt to circumvent regulations”.
24th July 2024: Philippines: The House Ways and Means Committee approved a substitute to bill 10329, which requires tobacco and vaping companies to implement a digital track-and-trace system to prevent illicit trade. According to the press, the new version of the bill includes novel tobacco products. All products would need to have a stamp affixed, allowing authorities to determine where and when the product was manufactured. The bill will now go to its second reading in the House of Representatives.
10th June 2024: Philippines: The Department of Trade and Industry (DTI) has announced a robust approach to enforce Republic Act 11900 (Vape Law), which regulates e-cigarettes, heated tobacco and nicotine pouches. Among the measures is a partnership with local government units (LGUs) to establish a centralised local registry of licensed vape outlets. Although mentioning “vape outlets”, we understand that it could include heated tobacco and other products, as the law does not differentiate products for retail restriction purposes. “Our top priority remains to protect the health and well-being of our future generation. Let this serve as a strong warning that the DTI will not tolerate blatant disregard for the Vape Law,” said DTI secretary Fred Pascual.

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