The Bureau of Internal Revenue (BIR) has announced a new requirement for tax stamps to be affixed on all vape products sold in the country.
Effective June 1, 2024, the BIR's Revenue Memorandum Circular 59-2024 mandated the use of 4th Generation Internal Revenue Stamps on vapor products.
The circular, signed by BIR Commissioner Romeo D. Lumagui Jr. on April 30, aims to address the proliferation of unregulated vape products in the market.
Based on the directive, locally manufactured vapes cannot be moved from production sites without the latest tax stamps affixed.
Moreover, the BIR stated that importation and release of vapor products from Bureau of Customs custody will be strictly prohibited unless the prescribed revenue stamps are affixed to the products.
According to the BIR, the pricing for tax stamps is set at P1 per piece for orders totaling a minimum of 1.65 million pieces and P2.50 per piece for orders of at least 165,000 pieces.
In addition to the tax stamp costs, vape manufacturers and importers will be required to pay excise taxes based on the type and quantity of the vape product, distinguishing between nicotine-based and conventional freebase variants.
The BIR said that vape manufacturers and importers can begin placing their orders for tax stamps starting on May 8, 2024.
This new regulation is part of the government's efforts to ensure the proper taxation and regulation of vape products in the country and to combat the spread of illicit vapes in the market.