Government sin tax revenues from new smoking devices jumped by more than half last year amid their increasing popularity, data from the Department of Finance (DOF) showed.

Total excise tax collection on heated tobacco and vapor products rose 66 percent to P630.6 million from January to December 2022 from P379.48 million in the previous year.

Based on the DOF data, excise tax on heated tobacco totaled P413.28 million last year, 70 percent higher compared with P242.88 million in 2021.

Vapor product excise taxes, on the other hand, amounted to P217.33 million, up 27 percent from P136.6 million in the previous year.

According to the DOF, the Bureau of Internal Revenue (BIR) collected P517.13 million in excise tax from these two smoking devices, doubling the P249.83 million haul recorded in 2021.

Of the total BIR collections, revenues from headed tobacco improved 56 percent to P378.9 million from P242.88 million.

Vapor products, meanwhile, paid P138.22 million in excise taxes to the BIR, a significant increase compared with only P6.96 million in 2021.

However, the Bureau of Customs’ tax collection on heated tobacco and vapor product dropped 12 percent last year to P113.48 million from P129.64 million a year earlier.

DOF data showed that Customs excise tax collection on vapor products declined by 39 percent from P129.64 million to P79.1 million last year.

Heated tobacco importers, on the other hand, paid the Customs bureau P34.37 million in excise taxes last year from zero payment in 2021.

Earlier, BIR Commissioner Romeo Lumagui Jr. said the bureau's  excise tax collections in the first four months of the year fell below target due to rampant illicit cigarette trade in the country.

To address this problem, Lumagui said he was seeking the cooperation of other entities, particular online marketplaces, to remove the illicit products being sold online.

In the Philippines, online platforms have become new outlets for unscrupulous individuals when it comes to illicit cigarette trade.

“We’re coordinating with them, hopefully we come up with an agreement soon as to how to address the proliferation of illicit products in their platforms,” Lumagui said.

The BIR also reminded the public that the sale of cigarettes and vape products below the new floor price is illegal.

Based on a BIR memorandum circular issued last May 5, the new floor price for a pack of cigarettes is P 114.60 while a ream now costs P1,146.

The minimum price of a pack of heated tobacco products was also adjusted to P120.40.

For vapor products, a pod of nicotine salt now has a minimum price of P200 for two milliliters and P354.97 for four milliliters. A bottle of conventional freebase or classic nicotine also costs at least P179.20 (10 milliliter), and P403.20 (30 milliliter).

According to the BIR, the new floor price or minimum retail price was based on the sum of production cost or the total landed cost, and the total of excise tax and value-added tax (VAT) of the tobacco product.