BIR releases tax guidelines for vape law

5:29 pm on 18 November 2022, Friday

by: Jade Veronique V. Yap 

The Bureau of Internal Revenue on Thursday issued the tax guidelines for implementing Republic Act No. 11900, also known as the "Vaporized Nicotine and Non-Nicotine Products Regulation Act." 

Under Revenue Regulations No. 14-2022, the floor price of 0.7 milliliters (ml) of a nicotine pod will be P131.04, while the 1.8 ml has a minimum price of P306.88 and the 1.9 ml nicotine salts cost P318.08.

Meanwhile, the floor price of the 15-ml bottle of conventional freebase nicotine is P207.2, and the larger 30-ml bottle of classic nicotine has a minimum price of P352.8. 

The minimal floor price for novel tobacco products is P224.04 for a 10-gram novel-snus with a production cost of P200, P0.03 in excise tax, and P24 in VAT. The price floors for larger units, which weigh 15.84 grams and 40 grams, respectively, are P252.04 and P280.11.

A violation of the BIR regulation could result in heavy fines ranging from P2 million to P5 million as well as probable two- to six-year jail sentences.

"Upon effectivity of the implementing rules and regulations of RA 11900, the manufacturers, importers, distributors, and retailers of novel tobacco products shall be given an eighteen-month transitory period to comply with the requirements of these regulations," BIR said 

BIR East NCR director Edgar Tolentino said that the guidelines would help the economy and ensure the health of minors.

Tolentino said they also continue to chase illegal vape sellers in the country. Since 2019, the BIR has collected P15.3 billion in taxes from vaping.

The said BIR Regulation, signed by Finance Secretary Benjamin Diokno on November 7, will take effect on December 1, 2022.


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