Philippine Bureau of Internal Revenue Raises Tobacco Prices Mandate

Sep.18.2024
Philippine Bureau of Internal Revenue Raises Tobacco Prices Mandate
Philippine BIR prohibits selling e-cigarettes, cigarettes and heated tobacco below set minimum price, violators to face criminal charges.

According to a report by GMA Integrated News on September 18, the Philippines' Bureau of Internal Revenue (BIR) has now prohibited the sale of e-cigarettes, cigarettes, and heated tobacco products at prices lower than those set by the tax authorities, which include a combination of consumption tax and value-added tax.

Philippine Bureau of Internal Revenue Raises Tobacco Prices Mandate
Revenue Regulation No. 16-2024" (RR No. 16-2024) specifies the latest floor prices for cigarettes, heated tobacco, and e-cigarette products in 2024. | Image source: BIR official website


On September 16, Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. issued Revenue Regulation No. 16-2024, updating the latest floor prices for cigarettes, e-cigarettes, and heated tobacco products.


Ma Guo reminded online sellers, retailers, and distributors of tobacco products that they will face criminal liability if they sell these products below the prescribed minimum price. He emphasized that selling these products below the minimum price is a criminal offense, and sellers will be sentenced to prison.


We are closely monitoring online platforms and physical stores. Do not sell products below the minimum price and immediately remove all posts and products priced below the minimum.


The latest rates for Revenue Regulation No. 16-2024 (RR No. 16-2024) are as follows:


The Bureau of Internal Revenue (BIR) stated that selling tobacco products at a price lower than the legally required comprehensive consumption and value-added tax is prohibited under Section 145 (C) of the amended National Internal Revenue Code (NIRC).


The agency also added that sellers who sell tobacco products below the specified base price "will be subjected to a fine of no less than 10 times the total amount of excise tax and value-added tax payable, but not less than 200,000 pesos (approximately $3,600) and not exceeding 500,000 pesos (approximately $9,000), and will be sentenced to imprisonment for no less than four years but not exceeding six years.


According to Article 263(A) of the revised National Internal Revenue Code, anyone selling heated tobacco products and vaping products at a price lower than the comprehensive consumption tax and value-added tax will be fined an amount equal to ten times the total amount of the consumption tax owed but not less than 200,000 pesos (approximately $3,600), and will also be sentenced to a minimum of four years but not more than six years in prison.


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