23/01/2020
Bili na po kayo habang mura pa! π π
RA 11467 Amended Excise Tax Law FAQ
President Duterte signed new taxes on alcohol, e-cigarettes into law. Here's everything that we know.
Q. WHAT ARE THE APPROVED TAX RATES FOR FREE-BASED NI****NE, HTPs AND SALT NI****NE:
The specific tax rates for free-based per 10ml eliquid are as follows:
P45 in 2020
P50 in 2021
P55 in 2022
P60 in 2013
The specific tax rate for Heated To***co Products per pack are as follows:
P25 in 2020
P27.50 in 2021
P30 in 2022
P32.50 in 2023
The specific tax rate for Salt Ni****ne Pods per 1ml are as follows:
P37 in 2020
P42 in 2021
P47 in 2022
P52 in 2023
All with a 5% per year increase indexation thereafter.
Q. WHEN ARE THESE TAX RATES EFFECTIVE?
Pending the issuance of the Implementing Rules and Regulations. These tax rates are effective January 1,2020. The tax rates mentioned in Q&A1 shall be increased by 5% every year effective January 1,2024.
Q: WHAT FLAVORS ARE ALLOWED FOR SALE?
Only plain to***co or plain menthol are allowed for sale.
The bill states that βthe manufacture, importation, sale and distribution of v***r products with flavoring other than plain to***co or plain menthol, shall be prohibited.
Q: WHEN IS THE PROHIBITION TO SELL OTHER FLAVORS THAN TO***CO OR PLAIN MENTHOL EFFECTIVE?
Essentially, our understanding of this, is 18 months after the issuance of the Implementing Rules and Regulations.
βSellers of v***r products are given a period of 18 months from the effectivity of the Implementing Rules and Regulations (IRR) of this act to comply with the requirements under such IRR.β
While we are strongly against this provision that was inserted in this amendment, we are working to ascertain the date of effectivity of this very important provision of this amended version of this bill.
Q. HAS THE IMPLEMENTING RULES AND REGULATIONS BEEN APPROVED AND CASCADED TO THE E-CIG INDUSTRY?
No IRR has yet been released to guide e-cig manufacturers, sellers and distributors. The 18 months period given to the industry is thus vague. PECIA is working very hard to get some clarity about this.
Q: WHICH GOVERNMENT AGENCY HAS JURISDICTION ON E-CIGS?
The PH Food and Drug Administration (FDA) has jurisdiction over e-cigs, HTPs and Salt Ni****ne.
Q: WHAT IS THE LEGAL AGE TO BUY V***R PRODUCTS IN THE PHILIPPINES?
It is 21 years old and above. The bill states that βselling v***r products to persons below 21 years old shall be prohibited, and shall be punished with a fine of PHP10,000 and imprisonment of 30 daysβ.