Marikina city: Marikina City 2nd District Rep. Miro Quimbo, chair of the House Committee on Ways and Means, on Monday pushed for the review of the excise tax on vapes amid increasing vape use among young people. During the panel's hearing on the potential health and fiscal implications of rising vape use at the House of Representatives, Quimbo noted the prevalence of the product in public.
According to Philippines News Agency, during the session, Quimbo highlighted the alarming increase in nicotine product usage among youth aged 10 to 19, citing national data from the Food and Nutrition Research Institute (FNRI). From a mere 0.8 percent in 2015, the figure rose to 3.2 percent in 2019 and skyrocketed to 39.9 percent in 2023. This sharp rise reflects both an influx of new nicotine users and a shift from traditional cigarette smoking to vape use.
Quimbo remarked that excise taxes on sin products are governed by two primary principles: to deter consumption and to generate revenue for health programs. The committee's hearing was an opportunity to examine data on vape consumption trends, tax collections, elasticity estimates, and projected healthcare costs. Currently, vape products are taxed under a 2-tier system for salt nicotine and conventional freebase, with salt nicotine taxed at PHP60.00 per milliliter (ml) and freebase at PHP6.95.
The committee is advocating for a unitary tax rate, removing the 2-tier distinction. This move is supported by the Bureau of Customs, Bureau of Internal Revenue, and Department of Finance, as the current system is susceptible to misdeclaration, complicating tax administration. Several bills suggest a unified rate of up to PHP66.15/ml to bring vape product taxes in line with those on combustible cigarettes.
Quimbo underscored the serious health risks posed by rising vape use, including respiratory and cardiovascular illnesses, which could strain the country's healthcare system. He emphasized the need for fiscal policies that align with national priorities to tackle both public health and consumption trends. He questioned whether the government could bear the costs of medical and rehabilitative interventions if vaping continues to rise and its health impacts become apparent. He stressed the duty to reconsider current excise tax rates to prevent a generation from becoming heavily nicotine-dependent and to ensure adequate funding for the consequences.
