MANILA — The Bureau of Internal Revenue (BIR) has implemented a regulation setting a mandatory floor price for cigarettes, vape, and heated tobacco products, enforcing compliance across various sales channels.
According to Philippines News Agency, BIR Commissioner Romeo Lumagui Jr. issued a stern warning on Wednesday, embedded in Revenue Regulation (RR) 16-2024, dated September 16, against selling these products below the mandated price. “We are warning all e-marketplaces, online sellers, retail sellers, suppliers, and distributors that selling vape, cigarettes, and heated tobacco products below the floor price is a criminal violation penalized by imprisonment of the seller,” Lumagui stated. He emphasized ongoing surveillance efforts covering both online platforms and physical stores, urging sellers to immediately remove any listings priced below the stipulated minimum.
The updated regulation outlines significant penalties for non-compliance, including fines not less than ten times the amount of excise and value-added taxes due, ranging from PHP200,000 to PHP500,000, and imprisonment terms from four to six years. Section 145 (C) of the National Internal Revenue Code (NIRC) prohibits the sale of tobacco products at prices lower than the total taxes imposed, reinforcing the government’s stance on maintaining tax integrity and public health standards.
This measure aligns with the BIR’s broader strategy to ensure fair market practices and prevent tax evasion in the tobacco industry, signaling a robust approach to regulation enforcement.