Vapes push excise tax collection to P135 B in H1

Vape products are slowly making significant tax contributions as they push excise tax collection 10 percent higher to P135 billion in the first half following the government's move to include them in the stamps system.

- By LOUISE MAUREEN SIMEON

Data obtained by The STAR showed that excise taxes went up by almost 10 percent to P134.54 billion from January to June compared to last year's P123 billion.

This was driven by the 34-percent hike in the tobacco excise segment to P58.97 billion from P43.95 billion. In particular, vape products posted a remarkable 738-percent jump in collections to P1.5 billion from only P179 million a year ago.

This developed after the Bureau of Internal Revenue (BIR) took full control of excise tax collections on vape products, imported or domestically produced, through their inclusion in the cigarette stamp system.

"As such, we were able to have regulatory control and monitoring of the product's taxability. This, coupled with aggressive enforcement activities on illicit products resulted in increases in collection," BIR assistant commissioner Jethro Sabariaga told The STAR.

Last year, the BIR mandated the fourth generation internal revenue stamps for all imported and locally manufactured vape products.

Lack of internal revenue stamps means non-payment of excise taxes, which would result in the seizure of vape products and the possible filing of tax evasion cases.