{
  "id": 1519027,
  "title": "Consumer groups: Vape tax loophole a gift to illicit traders",
  "url": "https://urgent.news/2026/08/17/consumer-groups-vape-tax-loophole-a-gift-to-illicit-traders",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-17T16:00:00.000Z",
  "source": {
    "name": "Philippine Star Business",
    "slug": "philippine-star-business",
    "url": "https://www.philstar.com/business/2026/08/18/2549927/consumer-groups-vape-tax-loophole-gift-illicit-traders"
  },
  "original_language": "en",
  "account": "Consumer advocacy groups in the Philippines have expressed concerns about a tax loophole in the country's vape excise system, accusing it of providing an advantage to illegal traders. The groups argue that the current tax structure, which treats nicotine salt and freebase nicotine products differently, allows for misdeclaration and evades taxes. Under the existing system, a 10-milliliter nicotine salt vape is subject to a higher tax (P602) than a similar-sized freebase product (P69.46). This results in a significant tax disparity (P532.54) for the same volume of product. ConsumerWatch Philippines and Progreso Para sa Bayan, two of the leading advocacy groups, have called for the elimination of this loophole, stating that it creates an incentive for misdeclaration and complicates tax enforcement efforts. The groups' concerns come in the wake of a recent House Committee on Ways and Means hearing on bills aimed at amending excise taxes on tobacco and vapor products. Committee Chair Rep. Miro Quimbo highlighted the gap between increasing vape consumption and declining tax collections, suggesting that illicit activities are becoming more prevalent. The groups argue that the tax system's complexity makes it vulnerable to manipulation, as two products that appear identical can be taxed differently based on a characteristic that is difficult to verify. They propose a single excise tax rate for all vapor products, regardless of nicotine formulation, in order to streamline regulations and make enforcement more effective. The groups acknowledge that different product categories may warrant different tax treatments, but they stress that simplifying the tax structure should not come at the expense of reducing opportunities for tax evasion.",
  "summary": "Consumer advocacy groups have urged Congress to scrap what they described as a “glaring loophole” in the country’s vape excise tax system, warning that the current distinction between nicotine salt and freebase nicotine allows unscrupulous operators to misdeclare products, evade taxes, and rob the government of much-needed revenues.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}