Business group asks President Duterte to sign vape bill into law to protect jobs, investments


A major industry group called on President Rodrigo Duterte to sign the vape bill into law to save the lives of Filipino smokers with the help of less harmful alternatives, while safeguarding local employment and investments.

Jesus Arranza, chairman of the Federation of Philippine Industries

In a letter to President Rodrigo Duterte sent through Executive Secretary Salvador Medialdea on 31 January 2022, the Federation of Philippine Industries (FPI) called for the President’s approval of the vape bill which was earlier passed overwhelmingly by the Senate and the House of Representatives.

The letter was signed by Dr. Jesus Lim Arranza, chairman of the FPI, which is considered the largest umbrella group of 168 organizations and companies from various Philippine industries. Arranza said FPI endeavors to serve as the voice of Philippine industries and become an effective partner of the government in promoting and developing globally competitive Philippine industries.

“As we are a staunch ally for the advancement of domestic industries, especially small and medium enterprises, FPI would like to take this opportunity to humbly urge His Excellency to enact into law the vape bill,” the FPI said in the letter.

The vape bill consolidates Senate Bill No. 2239 or the “Vaporized Nicotine and Non-Nicotine Products Regulation Act” and House Bill No. 9007 or the “Non-Combustible Nicotine Delivery Systems Regulation Act”.

It seeks to establish a clear and effective regulations, including product standards to govern less harmful alternatives to combusted cigarettes. Once enacted into law, it will regulate the importation, manufacture, sale, packaging, distribution, use and consumption of these products such as e-cigarettes and heated tobacco products (HTPs).

In January this year, the Senate and the House of Representatives ratified the bicameral conference committee report on the vape bill which provides the adult smoking population with viable alternatives such as vapes and HTPs that are considered less harmful when compared to combusted cigarettes.

The 2015 Global Adult Tobacco Survey shows there are 16 million smokers in the Philippines, including 76.7 percent who planned or thought about quitting, but only 4 percent were able to do so. The vape bill hopes to make e-cigarettes and HTPs available to help smokers quit.

The FPI, as the prime mover of Philippine industries responsive to the challenges of the global economy, said it strongly supports the vape bill's overwhelming approval in the House of Representatives and the Senate.

“Regulations of these e-cigarettes and heated tobacco products which have indications of providing reduced risks compared to cigarettes should rightly be at parity, or at least not more restrictive than cigarettes—the leading cause of preventable death in the world,” the FPI said.

International research studies show that vapes are at least 95-percent less harmful than traditional cigarettes. In the United Kingdom, health authorities promote e-cigarettes as less harmful options to cigarettes.

Countries that adopted progressive policies around vaping have seen their smoking rates fall twice as fast as other nations, according to scientific studies.

The FPI said the reasonable entry of these less harmful alternatives in the Philippines is definitely a win for public health, considering the lives of 16 million Filipino smokers. At the same time, the group said the vape bill will regulate a new industry that can contribute taxes to the government.

“The enactment of the vape bill will provide a sweet spot for achieving the government's revenue and health objectives,” it said.

The FPI noted that one of the vape bill's key features is the prohibition of sale to and marketing initiatives targeting or appealing to minors, together with the relevant hefty fines and imprisonment for non-compliance.

“In fact, the vape bill bans the sale, advertising and promotion of e-cigarettes and HTPs within 100 meters from any school, playground or other facilities frequented by minors,” it said. “Our time-honored advocacy extends, not only to the welfare of Philippine industries, but also to their stakeholders including adult smokers and minors.” The FPI noted the inclusion of provisions in the vape bill to combat illicit trade and promote a level playing field between and among foreign and domestic manufacturers, importers and exporters of vaporized nicotine and non-nicotine products.

“By ensuring that only the Department of Trade and Industry-registered and Bureau of Internal Revenue-compliant products are allowed to be sold, advertised or distributed through lawful means, illicit trade of these products as well as their unintended use are minimized, if not totally eradicated,” the FPI said.

The FPI said it is reassuring that the vape bill empowers the DTI to order a recall or seizure of non-compliant products sold both online and in-store. Together with the authorization of the BIR to prescribe a floor price for these products—regulation of online sales by the vape bill is considered timely given the widespread shift to e-commerce from traditional trade channels.

“These new reforms would make it difficult for unscrupulous, unregistered, and non-tax paying traders to peddle their smuggled goods to innocent consumers. All these also guarantee correct, adequate and stable collection of taxes for the government, while at the same time safeguarding local employment and investment of legitimate industries,” the group said.

The FPI said given all these considerations, it calls for the urgent enactment of the vape bill. “It is imperative that the government direct the country towards continued economic stability and fiscal sustainability through policies that support local businesses and workers,” it said.

“It is our desire to work hand in hand with the Office of the President to create a globally competitive Philippines grounded on effective legislation,” it said.

The FPI proactively recommends legislation enhancing economic development and informing members and the public about economic issues and policies which affect business directions.