Congress might adopt higher e-cig rates

Following the Department of Finance’s proposal to set taxes for alternative tobacco products at par with traditional ones, its adoption in the House of Representatives is likely to become a reality.

This was learned from House Committee Chairman for Ways and Means Joey Salceda as he hinted on the likelihood of such move, given the growing evidence that imposing a ban on e-cigarettes and vapes could serve as a catalyst for a so-called “black market.”

“(Given) the mounting evidence that requires higher precaution and, in the understanding that the prohibition or a ban merely creates black markets and uncontrolled and unregulated consumption, it’s better to tax it but higher,” Salceda said. “Using the precautionary principle, with taxation as a tool.”

Earlier, the approved Senate version of the sin tax bill intends to jack up prices for cigarettes at P45 a pack by 1 January 2020, increasing it by P5 annually until it reaches P60 a pack in 2023, to which it will be slapped a five percent tax annually by then.

On the other hand, e-cigarettes received a lower rate at a minimum rate of P10 per refill of vapor products with less than 10 milliliters.

However, when sought for comment on whether they will concede to the proposed P45 tax for e-cigarettes, the lawmaker said that he still needs to ask his team.