Key Points:
·The minimum selling price for heated tobacco products (20 sticks per pack) is as follows:
- New selling price: 61.47 pesos ≈ $1.12
- Original selling price: 60.11 pesos ≈ $1.09
·2 milliliters of nicotine pod minimum selling price: New selling price:
- 353.18 pesos ≈ $6.42
- Original selling price: 180.67 pesos ≈ $3.28
·DisposablePod's lowest selling price:
- New selling price: 183.31 pesos ≈ $3.33
- Original selling price: Original price not specified.
·Pre-filled pod minimum selling price:
- New price: 174.89 pesos ≈ $3.18
- Original price: No specified original price.
·Disposable devices are now being sold at a minimum price
- New price: 98.18 pesos ≈ $1.78
- The original price is unknown.
Effective date: Will take effect 15 days after being announced in the government gazette or on the official BIR website.
【2Firsts News Flash】According to a report by Business World on July 20th, the Philippines' Bureau of Internal Revenue (BIR) announced an increase in the minimum selling price standard for cigarettes and e-cigarette products.
In the tax regulations released on July 18th, the BIR updated the minimum retail prices for cigarettes, heated tobacco products, and nicotine vapor products. The BIR last set minimum retail prices in September 2024.
According to the National Tax Research Center, the minimum retail price set by the BIR takes into account estimated sales and value-added taxes, as well as reasonable production costs.
The Bureau of Internal Revenue (BIR) has announced that the minimum retail price for a pack of cigarettes has increased from 78.58 pesos (approximately $1.40) to 85.57 pesos (approximately $1.50). The assumed production cost of cigarettes has also been raised from 7.16 pesos (approximately $0.10) per pack to 10.25 pesos (approximately $0.20) per pack.
The minimum selling price of each pack of cigarettes (500 packs) has been adjusted from the previous 785.80 pesos (about $14) to 855.68 pesos (about $15), with production costs estimated to have increased significantly from 71.60 pesos (about $1) to 102.50 pesos (about $2).
The minimum selling price of a pack of 20 heated tobacco products has increased from 60.11 pesos (approximately $1.07) to 61.47 pesos (approximately $1.10), while the assumed production cost has decreased from 19.54 pesos (approximately $0.35) in September to 19.04 pesos (approximately $0.34).
At the same time, the Bureau of Internal Revenue (BIR) has adjusted the minimum selling price of a 2-milliliter nicotine pod from the previous 180.67 pesos (approximately $3) to 353.18 pesos (approximately $6), with production costs assumed to increase from 52.11 pesos (approximately $1) to 200.68 pesos (approximately $4).
Furthermore, the minimum selling price for disposable pods has been reset to 183.31 pesos (approximately $3), pre-filled pods to 174.89 pesos (approximately $3), and disposable devices to 98.18 pesos (approximately $2). The capacity of these products is 10 milliliters.
The Bureau of Internal Revenue (BIR) collected a total of 58.97 billion pesos (approximately $1.1 billion) in tobacco product excise taxes in the first half of this year, representing a 34.16% year-on-year increase. During the same period, revenue from e-cigarette products surged by 738.09%, reaching 15 billion pesos (approximately $27 million).
According to the tax ordinance, "This regulation will come into effect 15 days after it is published in the government gazette or the official website of BIR, whichever comes first.
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