Health groups push PHP 80 minimum tax on vapes

By Francis Allan L. Angelo

ILOILO CITY – The Healthy Philippines Alliance and HealthJustice Philippines urged Congress to impose the highest possible excise tax on vapor products, proposing a minimum rate of PHP 80 to protect young Filipinos from nicotine addiction.

The groups said higher taxes could make vaping less affordable to minors, reduce future cases of preventable disease, and ease the long-term financial burden on families and the public health care system.

The Department of Finance and the Department of Health have proposed a unified PHP 72.93 rate beginning in 2027 for cigarettes, heated tobacco products, and vapor products.

Under the fiscal proposal, PHP 72.93 would apply to every milliliter of salt nicotine, every 2 milliliters of freebase nicotine, and every pack of 20 heated tobacco products.

Health advocates said the proposed PHP 72.93 threshold remains insufficient to discourage use and prevent addiction.

They instead called for a tax of PHP 80 or higher as an essential preventive health measure.

“Vapes are far from harm-free. The proliferation of these products has accelerated the early onset of chronic heart and lung diseases among our youth,” said Dr. Jaime Galvez Tan, former health secretary and lead convener of the Healthy Philippines Alliance.

The World Health Organization says e-cigarette aerosols may contain nicotine, additives, flavorings, and other chemicals harmful to health.

The WHO also warns that nicotine is highly addictive and can harm the developing brains of children and adolescents, while e-cigarette use is associated with cardiovascular and lung risks.

“Allowing young people to develop chronic health conditions early in life guarantees staggering medical costs for our healthcare system down the line. Hence, taxing these products at Php80 or higher is an indispensable preventive health measure,” Galvez Tan said.

Republic Act No. 11467 currently imposes separate excise tax structures on salt nicotine and conventional freebase nicotine products.

After the annual 5 percent indexation mandated by the law, the 2026 tax is approximately PHP 60.20 per milliliter of salt nicotine and PHP 69.46 per 10 milliliters of freebase nicotine.

The House Committee on Ways and Means is considering proposals to unify the two rates as part of broader changes to taxes on nicotine and tobacco products.

The panel, chaired by Marikina Rep. Miro Quimbo, has been consolidating several filed measures that seek to collapse the two-tier system into a single rate, citing enforcement difficulties and revenue leakage under the current framework.

HealthJustice objected to counterproposals seeking to reduce the tax on vapor products to as little as PHP 15 per milliliter.

That figure appears in House Bill 10289, filed by Manila Rep. Rolando Valeriano, which proposes a uniform PHP 15 per milliliter rate beginning in 2027 with annual increases of 5 percent thereafter.

“Proposals to drastically lower vape taxes to Php15 per milliliter are reckless and unacceptable. These are just a veiled attempt of the tobacco and vape industry to introduce more addictive products to our youth and hook them to long-term addiction. We cannot allow lower tax rates that enable more addictive substances, like nicotine salt vapes, to proliferate in the market,” said Benedict Nisperos, legal adviser of HealthJustice.

Supporters of lower or differentiated rates have argued that excessive taxes could encourage illicit trade, while health groups maintain that cheaper products would increase access and weaken the tax’s deterrent effect.

The House committee said its review would consider public health, government revenue, consumer behavior, and the illegal nicotine trade before recommending a final rate.

HealthJustice also compared the Philippines’ regulatory approach with those of its Southeast Asian neighbors.

“Eight out of eleven ASEAN countries have completely banned vapor products to protect their citizens, yet the Philippines continues to allow the sale of these addicting and health harming products. Slashing tax rates further, paired with an already lenient Vape Regulation Law (RA11900), effectively invites more predatory marketing aimed straight at young Filipinos,” Nisperos added.

Republic Act No. 11900 regulates the importation, manufacture, sale, packaging, advertising, and distribution of vaporized nicotine, non-nicotine, and novel tobacco products in the Philippines.

The measure lapsed into law on July 25, 2022, without the signature of President Ferdinand Marcos Jr. It placed vapor products under the Department of Trade and Industry rather than the Food and Drug Administration, and set the minimum age of access at 18 instead of 21, provisions that health groups have sought to reverse since its passage.

The Healthy Philippines Alliance and HealthJustice called on lawmakers to prioritize health protection over commercial interests when setting the final excise tax structure.

HealthJustice Philippines is a nonprofit organization advocating tobacco control, effective public health policies, and stronger regulatory safeguards against health hazards.

The Healthy Philippines Alliance is a HealthJustice-convened network of civil society groups and patient-led advocates working to prevent and control noncommunicable diseases through policy advocacy and public awareness.