Consumer groups wary of vape tax loophole
Consumer groups have urged Congress to scrap what they described as a “glaring loophole” in the country’s vape excise tax system.
Consumer groups in the Philippines are sounding the alarm over a "glaring loophole" in the vape excise tax system, warning that it allows unscrupulous operators to evade taxes and deprive the government of much-needed revenues. The CitizenWatch Philippines and Progreso Para sa Bayan argue that the current distinction between nicotine salt and freebase nicotine products creates an unfair tax burden, with nicotine salt products facing a tax 9 times higher than freebase products.
This disparity incentivizes misdeclaration and hampers tax enforcement efforts, as highlighted by House Ways and Means Committee Chair Rep. Miro Quimbo, who pointed out the growing illicit market due to declining tax collections. Proponents of a unified tax rate suggest that a simplified system would make enforcement easier and reduce opportunities for tax evasion, emphasizing that the current complexity creates loopholes for illicit operators.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
