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PHILIPPINES: The e-cigarette industry is resisting taxes!

PHILIPPINES: The e-cigarette industry is resisting taxes!

In the Philippines, the resistance of the e-cigarette industry is organized against taxes that could push smokers no longer to choose the transition to vaping. The e-cigarette lobby said its products were safer than traditional products and asked the government not to tax it at the same rate as tobacco products.


TAXING THE E-CIGARETTE AT THE SAME RATE AS TOBACCO?


In the Philippines, groups in the vaping industry said last Friday that taxing e-cigarettes at the same rate as conventional cigarettes would not reduce tobacco consumption and could discourage the use of these products. reduced risks.

In separate statements, thePhilippine Association of the Electronic Cigarette Industry (PECIA) et Vapers Philippines (Vapers PH) urged lawmakers to learn about studies that consider e-cigarettessignificantly less harmful alternative».

«Heavy taxes on reduced risk products will only encourage smokers to use conventional cigarettes instead of switching to less harmful nicotine products"Said PH Vapors.

PECIA also called for a public consultation on the draft tax legislation, which should discuss other measures to reduce smoking.

«PECIA wishes to draw attention to the fact that the Congress did not hold a public consultation on the draft law. Our organization could have provided the resources and studies needed to help House representatives understand the tobacco reduction strategies adopted by some countries Said PECIA in its statement.

Bill (HB) 1026, approved at second reading August 14, raises excise tax on heated tobacco and electronic cigarettes to 45 pesos (75ct of Euro) for 2020 and proceeds to a gradual increase of 5 pesos (Euro 10ct) per year, on par with conventional cigarettes. The tax on products containing nicotine salts will be increased to 30 pesos per ml (50ct of Euro) with an additional annual increase from 5 to 45 pesos up to 2023.

However, the version of the bill proposed by the Ministry of Health and the Ministry of Finance proposes that steam-based products be taxed at the same rate of 45 pesos per milliliter, with a gradual increase of 5 pesos per year.

According to Vapers PH, the United Kingdom and New Zealand encouraged their citizens to adopt "less harmful nicotine-based products, especially e-cigarettesTo fight against smoking.

«Experts estimate that the remarkable decline in the smoking rate in Japan has been accelerated by the entry of heated tobacco products into the Japanese market in 2014"Said PH Vapers.


THE USE OF THE E-CIGARETTE IS ' NOT NECESSARILY BENEFICIENT«


Karl Kendrick T. Chua - Under-Secretary of Finance

The Under-Secretary of Finance, Karl Kendrick T. Chuahowever, said that e-cigarettes and other vape products should be taxed at the same rate as regular cigarettes, because using e-cigarettes is "not necessarily beneficial".

«In the DoH and DoF proposal, the excise tax on e-cigarettes was increased to 45 pesos in order to align it with regular cigarettes, no matter if they are vaporized, heated or burned, they have the same effect Chua said at the defense committee's first Senate hearing on Thursday.

« A heated tobacco product is basically the same as the burnt tobacco product and should not be taxed differently", Added Mr. Chua.

The HB 1026 bill is expected to go into final reading this week and could be sent to the Senate by the end of August. According to DoF estimates, this proposal on alcohol and electronic cigarettes could generate about 52 billion pesos, while the HB 1026 bill is expected to generate 33,3 billion pesos by 2020.

If the DoH-DoF proposal is adopted, the recently adopted measures and excise tax on tobacco products will help reduce the funding gap Universal Health Care (UHC) from 10 billion to 62 billion pesos in 2020.

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About the Author

Passionate about journalism, I decided to join the editorial team of Vapoteurs.net in 2017 in order to mainly deal with vape news in North America (Canada, United States).

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