The Philippine Internal Revenue Bureau Issued New Regulations: The Price Of E-cigarettes And Tobacco Products Shall Not Be Lower Than The Official Minimum Price

The Philippine Internal Revenue Bureau issued new regulations: the price of e-cigarettes and tobacco products shall not be lower than the official minimum price

The Bureau of Internal Revenue (BIR) of the Philippines has issued new regulations prohibiting the sale of e-cigarettes, cigarettes and heated tobacco products below the minimum price set by the tax agency, and offenders will face fines and imprisonment. The BIR said the new regulations are aimed at ensuring tax compliance and combating low-price sales.

According to GMA Integrated News on September 18, the Bureau of Internal Revenue (BIR) of the Philippines has now prohibited the sale of e-cigarettes, cigarettes and heated tobacco products below the minimum price set by the tax agency, which is set by the tax agency's combined excise tax and value-added tax.

On September 16, BIR Director Romeo Lumagui Jr. issued Revenue Regulation No. 16 of 2024 (RR No. 16-2024), which updated the latest floor prices for cigarettes, e-cigarettes and heated tobacco products.

Lumagui reminded online sellers, retailers and distributors of tobacco products that they will face criminal liability if they sell these products below the specified floor price. He stressed that selling these products below the reserve price "is a criminal offense and sellers will be sentenced to jail."

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

Here are the latest prices announced by Revenue Regulation No. 16 of 2024 (RR No. 16-2024):

Revenue Regulation No. 16-2024 (RR No. 16-2024) stipulates the latest floor prices for cigarettes, heated tobacco and e-cigarette products | Source: BIR official website

The BIR said that Section 145 (C) of the revised National Internal Revenue Code (NIRC) stipulates that the sale of tobacco products at a price lower than the combined excise and value-added taxes required by law is prohibited.

The bureau added that sellers who sell tobacco products below the prescribed floor price "shall be fined not less than 10 times the total amount of excise taxes and value-added taxes payable but not less than P200,000 (about $3,600) and not more than P500,000 (about $9,000), and shall be sentenced to imprisonment for not less than four years but not more than six years."

"Section 263(A) of the Revised National Internal Revenue Code also provides that any person who sells heated tobacco products and vaporizing products at a price below the combined excise taxes and value-added taxes shall be fined 10 times the total amount of excise taxes payable but not less than P200,000 (about $3,600) and shall be sentenced to imprisonment for not less than four years but not more than six years."