Philippine Vape and Tobacco Industries Oppose Taxes

Philippine e-cigarette lobbying groups state that e-cigarette products are safer than traditional cigarettes and urge the government not to impose the same tax rates on them as on tobacco products.
 
Industry organizations recently stated that taxing e-cigarettes and vapor products at the same rate as regular cigarettes will not curb tobacco use, and if the tax rates are the same, it will not encourage smokers to switch to "less harmful alternatives."

The Philippine E-Cigarette Industry Association (PECIA) and the Philippine Vapor Products Association (Vapers PH) urged lawmakers to consider research findings that show e-cigarettes and vapor products are "much less harmful alternatives."

"Imposing heavy taxes on low-risk products will only lead smokers to continue using traditional cigarettes instead of switching to less harmful nicotine alternatives," said the Philippine Vapor Products Association.

PECIA hopes to highlight the fact that Congress has not conducted public consultations on the proposed legislation. Our organization could provide resources and research to help House representatives understand some strategies that other countries are adopting to reduce tobacco harm," PECIA stated in a press release.

However, the version of the bill proposed by the Department of Health and the Department of Finance suggests that vapor products should be taxed at a rate of 45 pesos per milliliter, increasing to 60 pesos per milliliter by 2023, with an additional 10% increase each year thereafter.

The Philippine Vapor Products Association stated that the UK and New Zealand have encouraged their citizens to adopt "less harmful nicotine products, especially e-cigarettes," instead of regularly smoking cigarettes. "Experts believe that the introduction of heated tobacco products in Japan in 2014 accelerated the significant decline in smoking rates in Japan."

However, Philippine Deputy Finance Minister Karl Kendrick Chua stated that e-cigarettes and vapor products should be taxed the same as regular cigarettes because using e-cigarettes "is not necessarily more beneficial."