Phillipines: Market data & legal analysis of the nicotine sector

20th January 2025: Philippines: A group of House leaders has proposed a bill to temporarily suspend the annual increase of 5% in tobacco excise taxes for one year, media reports. This measure seeks to combat the growing illicit tobacco trade and its negative impact on tax revenues. The bill also 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. The Department of Finance (DOF) has announced its support for the proposed suspension of annual increases in tobacco excise taxes, which have led to a surge in illegal trade and a drop in revenue collection.
14th January 2025: Philippines: The Department of Trade and Industry (DTI) has reminded importers and manufacturers of vaping products and heated tobacco products (HTPs) to register for the Philippine Standard (PS) License. Only duly registered products are allowed to be sold and advertised. Non-compliance with the requirements would result in formal charges.
13th January 2025: Philippines: The Bureau of Internal Revenue (BIR) has confirmed a decrease in excise tax collection from 2021 to 2024 that led to a drop of more than 20% in revenue from excisable products over the period, media reports. The BIR confirmed the loss of tax revenue during a Senate hearing on the smuggling and illicit trade of these products, in which the panel focused on tobacco products, heated tobacco products, vapour products, cigars, and cigarettes.
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.

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