Take note, vapers! BIR raises taxes on electronic cigarettes

The Bureau of Internal Revenue (BIR) has increased the excise tax rates of vaporized and heated cigarettes as well as the novel tobacco products.

(File photo)

The new tax schedules are contained in Revenue Regulations No. 14-2022 which was signed by Department of Finance (DOF) Secretary Benjamin E. Diokno.

"The tax hike is not only aimed at increasing the take from this source but increase retail prices to minimize the unhealthy habit of smoking," said a high-ranking revenue official.

The current tax rate of P30 per pack of 20 for heated cigarette has been increased to P32.50 starting next year, while the nicotine vapor products per milliliter was adjusted to P52 for 2023 from the existing P47.

For the conventional "freebase" or "classic" nicotine vapor products, the current rate of P55 per 10 milliliters is adjusted to P60 for next year.

The guidelines stated that the rates for the three items will be increased by five percent every year starting in 2024.

The tax rate for various novel tobaccos is increased from the current P2.50 per kilogram to P2.60 in 2023 with a four-percent hike every year thereafter.

Novel tobaccos refer to non-burning substance made partly of tobacco leaf as raw material containing nicotine and used as substitute for cigarette.

The regulations warned that illegal manufacture, importation, or distribution of these sin products is punishable with two-year imprisonment and fine of P2 million for first offense and higher penalties for succeeding violations.