According to Manila Standard, Joey Sarte Salceda, chairman of the Philippines' House committee on ways and means, announced that his group will be conducting an investigation into the e-cigarette brand FLAVA, in order to uncover any potential cases of tax evasion and tax fraud.
On October 27, the organization conducted a raid on a warehouse storing illegally imported e-cigarettes featuring the brand's logo. They seized 1.4 million units of disposable e-cigarette products, valued at 1.43 billion pesos (approximately 25.5 million dollars). Sarseda estimates that out of this amount, around 728 million pesos (approximately 12.99 million dollars) could be unpaid consumption taxes.
Salceda added that the brand appears to have mistakenly labeled its product as a freebase alkaline e-cigarette instead of salt nicotine, as the latter is subject to higher taxation.
According to Republic Act No. 11467, the tax rate for salt nicotine e-cigarettes is P52 per milliliter, while the tax rate for freebase nicotine e-cigarettes is P60 per 10 milliliters.
We have received a report from independent testing that seemingly confirms one of FLAVA's products, Chillax, contains a high concentration of nicotine salts. If this is true, then they have only paid around one-tenth of the consumption tax that these products are supposed to pay," said Salseeda.
"FLAVA has been accused of not adhering to the stamp duty requirement for e-cigarette products," Salceda added.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
