E-cigs, vaping
items subject
to taxaflon
BY VINGE I{ON'ITO
THE Senate yestetday passed
the bill increasing excise taxes
on cigatettes, with a last-minute
amendment that would subject
electrooic cigarettes and vaPing
prodr:cts to regulation and taxation
tor ttre hrst !me.
Senate Bill No. 2233 was unani-
mously approved on tlird and 6nal
reading with 20 votes in its favot,
and no abstentions.
The bill could make it to Presi-
{ent Duterte's desk in the nick of
time, as Senate President Vicente
Sotto III said the House of ReP-
lesentatives committed to adoPt
the Senate bi.ll,
: This would avoid the need for a
bicameral conference committee
to reconcile the differences with
House Bill No. 8677, which set
lower excise tax rates.
The bill was tansmitted to tle
House last night for concultence.
- Congtess is set to adiouJn on
friday.
. "We will ask dre House ro adoPt
the Senate ve.sion, so we have ro
iee E.CIGS ) Paee
HiT6f"ess Insight
Tuesday, June 4,2OIg
E.CIGS Fdgardo Angara was originally lim-
ited to cigars and cigarettes.
use e-cigaftttes to ease them out
drehabir
of enhanc€mert progam (IIFEE.
Recto introduced an amendment
be lrry carefirl with the Senate ve!- Senate President Pro Tempore Sen. Risa Hontiveros was in which vould tap &e rarenues derivred
sion and try to incorporate already a.ll Ralph Recto introduced amend- favor of the arnendment, but she ftom orcise uxes on slgat-sweetened
the ideas, not only ftom us, but also ments that would expand the bill's challenged the reasoning for the beveoges and alcoholic drinfts.
ftom dre House of Reptesentatilneg-' scope to "heated tobacco products Iower ta{ rates by saying the US . Fifty percent of such revenues
Sotto said. (llTPs) and vapor ptoducts." Food and DrugAdministration has ,vould be disttibuted as follows: 80
Voting on second and third read- ,/ The excise axes wor:ld be lower not teached a conclusion on the
Pefcert for fie UHC and 20 percent
ings was swifdy held shordy after than tiat of cigars and cigarettes. "relative safety of this producl" for the HFEP
last minure dranges were introduced / For lIIPs, the rate would be P 10 pet
'qwhile we agree to tax drern so ve The bill will allocate revenue
during the period of amendments in ' pack effective Jan. 1,2020. can get a potion for healdr, we urge detived ftom er<cise axes on IITPs
the same session. For vapor ptoducts, each car- the Senate d-rat this amendment not and vapot ptoducs the same way.
SB 2233 will increase the excise tridge, refll or pod of liquid or gel be considered an acknowledgement Meanwhile, health care and facili-
tax on each pack of cigatettes on (mpe juice) would be t^xed at^$te
' a staggered basis to P45 on Jan" 1,
that they're less tisky than traditional ties wou.ld claim a smaller share of
of P10 for every 10 milliliters, begin- cigarette{' Hontiveros said. terimues from tobacco excise taxes.
' 2020, P50 on Jan 1,2021,P55 on
rungJ^n.1,2020. Angaa accepted the indusion of The 80-20 share would be sourced
I an. 1, 2022, and P 60 on Jan. 1, 2023. Both the taxes on HTPs and e-cigatettes under the bilt saying ftom 50 percent of twenues only
Beginning Jan. '1, 2024, the r:Lte vipor producti vould be adjusted 'T.ather than drese products remain after the share of local governmeflt
would be increased by 5 percent ev- by 5 percent el.ery yeat beginning untaxed, the government gets a units drat produce tobacco vete
ery year duough revenue regulations
Jan 1,2021,. shate ftom what the manufacturers deducted.
issued by the Secreary of Finance.
Recto said e-cigarettes ate on get ftom iC' Fines fot possession of coun-
Meanwhilg the adlalorcm ax on average "roughly 90 percent less Senators also Gnalized the alloca- tetfeit or recyded t4x stamps weie
' cigars vould be adjr-rsted by 5 petcent harmful" dral cigarettes, tion of the revenues to be gener- increased to P500 million or as much
every yeat saxtngJanuary 1,2024, He also said those who vanted ated by the increased excise taxes as 10 times the ulue of the seized
The bill sponsoted by va1.s and to quit cigalette smoking should be to the unir,nersal health care (JHQ samps, on top of a minimum of 10
B5
means committee chair Sen. Juan . not txed heavily if they wanted to progtam and the health facilities years' imprisonmeot
$ ffit)r FAee'r