MANILA (May 20) – Senator Sherwin Gatchalian urged higher excise taxes on tobacco and vape products amid rising smuggling and increased use among adolescents. During a Senate hearing on House Bill 11360, he argued that reducing taxes will not curb illicit trade, emphasizing the need to deter youth access to cheap and potent vaping products, especially those using nicotine salts.
The bill proposes a P41 per pack tax on heated tobacco and P66.15 per mL on vapor products, with automatic increases: 2% every even-numbered year and 4% every odd-numbered year until 2035. It also empowers the President to raise taxes by up to 5% if the deficit exceeds 2% of GDP.
To further discourage youth use, Gatchalian recommended a uniform tax rate for all vape types and an ad valorem tax on devices. He also highlighted the weak enforcement of anti-smuggling laws — noting that despite thousands of seizures by the BIR and Customs, very few cases have resulted in convictions.
Senator Pia Cayetano opposed any move to lower taxes on tobacco or vape products, warning it would harm public health and undo past reforms. She pointed to a surge in youth vaping — from 3.2% in 2018 to 39.9% in 2023 — and blamed the 2022 Vape Law for weakening protections under the 2020 Sin Tax Reform Act.
