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Tag: Philippines

  • Filipino Lawmakers Weigh Unified Vape Tax  

    Filipino Lawmakers Weigh Unified Vape Tax  

    Philippine lawmakers are considering a single excise tax for vape products, as health advocates push for a rate of at least P80 ($1.28) to discourage youth access and curb nicotine addiction. The House committee on ways and means is studying a unified rate for salt-nicotine and freebase products, citing existing tax disparities and their potential impact on consumer behavior and illicit trade. 

    The Department of Finance and Department of Health have proposed a unified P72.93 ($1.17) tax by 2027 covering cigarettes, heated tobacco, and vape products. Health groups argue this is too low, while a proposal by Cagayan de Oro Rep. Rufus Rodriguez would set the vape rate at P15 ($0.24) per milliliter, with the aim of balancing revenue collection against the risk of driving consumers toward illegal products. 

  • Philippines Says 93% of Vape Brands Unregistered

    Philippines Says 93% of Vape Brands Unregistered

    The Philippines’ Department of Trade and Industry (DTI) said 292 of 313 vape brands (93%) identified in the market are not registered with the agency. DTI Assistant Secretary Marcus Valdez II disclosed the figures during an Aug. 25 House Ways and Means Committee hearing on tobacco and vapor excise taxes.

    Lawmakers and government agencies are considering a single excise tax rate for nicotine salt and freebase vapor products, arguing the current two-tier system contributes to tax leakage and illicit trade. “They will not register because the tax is too high,” committee chairman Miro Quimbo said. The Bureau of Internal Revenue reported 6,196 tobacco and vape enforcement operations in 2026, generating an estimated P1.7 billion ($27 million) in excise taxes.

    The Bureau of Customs reported 253 tobacco seizures worth P10 billion ($160 million) and 18 vapor-product seizures worth P1.6 billion ($25.6 million) this year, compared with P1.87 billion and P649 million ($29.9 million and $10.4 million), respectively, in 2025. Lawmakers cautioned that excessive taxes could drive more consumers toward illicit products, with Rep. Roberto Nazal saying authorities should avoid “overtax[ing] to the point that we will promote further smuggling.”

  • Value of Seized Tobacco in Philippines Quadruples

    Value of Seized Tobacco in Philippines Quadruples

    The Philippines’ Bureau of Customs (BOC) said it seized nearly P11.68 billion ($186.9 million) worth of illegal cigarettes and vape products from January through July 2026, up 464% from the P2.52 billion ($40 million) seized during all of 2025, according to Enforcement and Security Services data presented to the House Ways and Means Committee. Cigarette and tobacco seizures accounted for most of the total, with major confiscations at the ports of Surigao, Manila, Zamboanga, and Cebu, while vape seizures were valued at about P1.65 billion ($26.4 million), primarily at the Manila International Container Port. BOC said confiscated products are destroyed and do not enter the market.

  • LT Group Hits Record Income on Banking, Tobacco Gains

    LT Group Hits Record Income on Banking, Tobacco Gains

    LT Group Inc. — one of the Philippines’ largest business groups, controlled by the Lucio Tan family — reported a 14% increase in attributable net income to a record P17 billion ($272 million) in the first half of 2026, driven by higher earnings from its banking and tobacco businesses. Philippine National Bank contributed P8.2 billion ($131 million), or 48% of group earnings, while Fortune Tobacco Corp. contributed P6.1 billion ($98.1 million), or 36%.

    Fortune Tobacco’s net income rose 13% to P6.2 billion ($98.6 million), supported by higher equity earnings from its 49.6%-owned associate PMFTC Inc. PMFTC benefited from cigarette price increases implemented in March and a 2% increase in offtake volume to 11 billion sticks, matching overall industry growth. LT Group also said government enforcement and seizures had reduced illicit tobacco activity, with stricter port controls and action against machinery used to produce illicit tobacco expected to support further progress.

  • Philippines NTA Opens Tobacco Growing to Landless Farmers

    Philippines NTA Opens Tobacco Growing to Landless Farmers

    The Philippines’ National Tobacco Administration (NTA) said landless farmers in Cagayan can enter tobacco production by renting suitable farmland, with partner buying companies potentially providing ₱25,000–₱30,000 ($400 to $480) per hectare in rental assistance along with production inputs and services.

    Qualified growers can also participate in the NTA’s Tobacco Contract Growing Scheme, under which farmers repay 60% of production assistance while the remaining 40% is provided as a subsidy. The NTA urged prospective growers to undergo soil testing and site assessments before planting, particularly to ensure adequate water supply and drainage.

  • Philippines Customs Battling Seized-Cigarette Theft

    Philippines Customs Battling Seized-Cigarette Theft

    The Philippines’ Bureau of Customs adopted a one-strike policy for personnel caught stealing or improperly handling confiscated cigarettes, following reports of attempts to divert seized tobacco products. Commissioner Ariel Nepomuceno said employees found violating the policy will be immediately removed from service and face administrative, civil, and criminal proceedings.

    Under the directive, seized cigarettes cannot be transferred, relocated, or disposed of without the commissioner’s written approval. Nepomuceno also ordered the BOC’s Internal Administration Group to recommend stronger safeguards for confiscated tobacco products at ports, emphasizing that the goods are critical evidence in the agency’s efforts to combat illicit trade and protect government revenue.

  • Philippines Requires Nicotine Companies to Register Brands

    Philippines Requires Nicotine Companies to Register Brands

    The Philippine Bureau of Internal Revenue (BIR) gave manufacturers, importers, and exporters of tobacco and vapor products six months to register their brands and product variants under Revenue Memorandum Circular No. 86-2026, published July 31. The requirement covers cigarettes, heated tobacco products, vapor products, novel tobacco products, cigars, smoking tobacco products, and chewing tobacco products, with companies that fail to comply subject to penalties.

    The updated BIR registry includes 192 entries across 14 manufacturer, importer, and exporter classifications, including 84 vapor product entries, 43 cigarette-related entries, and listings for heated tobacco, novel tobacco products, cigars, chewing tobacco, and smoking tobacco. The BIR said registered products must also comply with graphic health warning requirements and, where applicable, the affixing of BIR tax stamps, although IRSIS stamps are not yet available for novel tobacco products, cigars, smoking tobacco, and chewing tobacco products.

  • Officials Urge Philippines to Prioritize Smoke- and Vape-Free Spaces

    Officials Urge Philippines to Prioritize Smoke- and Vape-Free Spaces

    Local government officials across the Philippines are calling on President Ferdinand Marcos Jr. to certify as urgent House Bill 9603, the proposed Smoke-Free and Vape-Free Environment Act, ahead of his State of the Nation Address. The bill would establish national standards for smoke- and vape-free public spaces and workplaces, strengthen enforcement, and provide funding for local implementation, while not banning cigarettes or vaping products outright.

    The proposal is backed by governors, mayors, and health officials who argue national legislation is needed to reinforce local smoke-free ordinances. Supporters also want the removal of indoor smoking and vaping areas, expanded smoke-free zones, stronger enforcement mechanisms and increased penalties for violations. The push comes four years after the Philippines’ Vaporized Nicotine and Non-Nicotine Products Regulation Act took effect and amid ongoing debate over youth vaping and secondhand smoke exposure.

  • Filipino Leaders Press for Smoke-Free Bill

    Filipino Leaders Press for Smoke-Free Bill

    A coalition of Philippine local government leaders is urging President Ferdinand Marcos Jr. to certify House Bill 9603, the Smoke-Free and Vape-Free Environment Bill, as urgent legislation. The proposed measure would establish a nationwide ban on smoking and vaping in indoor public spaces and workplaces, building on smoke-free ordinances already adopted by several cities and provinces.

    Supporters say the bill would strengthen enforcement, expand smoke-free zones, fund cessation programs, and create incentives for local governments that effectively implement tobacco and vaping control measures.

  • JTI Backs Philippines’ Market Stabilization Strategy

    JTI Backs Philippines’ Market Stabilization Strategy

    Japan Tobacco International (JTI) endorsed the NTA’s Strategic Tobacco Production Information Campaign (STRATPIC), which aims to align tobacco production with global demand and discourage oversupply ahead of the 2026-2027 planting season. JTI said the initiative will support the industry’s long-term sustainability by helping farmers avoid market disruptions, while emphasizing that data-driven planning, stakeholder collaboration, and a stable policy environment are essential to protecting farmer livelihoods and encouraging continued investment in the Philippine tobacco sector.