Japan Tobacco International backed a proposal to unify excise taxes on vapor products in the Philippines, telling lawmakers that a single rate would curb tax avoidance and strengthen revenue collection. Speaking at a House Ways and Means Committee hearing, JTI Director for Fiscal and Regulatory Affairs Mario Zinampan said differing tax rates for salt nicotine and freebase products create opportunities for misclassification and regulatory arbitrage, effectively enabling another form of illicit trade. He said harmonizing rates would help ensure a level playing field and prevent product misdeclaration.
JTI also argued that a unified vape tax should be aligned with the rate imposed on heated tobacco products, noting that both are recognized alternatives to combustible cigarettes. Zinampan cited the legislative intent behind Republic Act No. 11467, which set the excise tax framework for combustible and non-combustible nicotine products, and said aligning vapor and heated tobacco taxes would promote coherence in the system. The remarks supported Romero ‘Miro’ Quimbo, chairperson of the House Ways and Means Committee, who renewed his call for a unitary vape tax, citing rising youth nicotine use at the hearing.