BIR cuts floor price for cigarettes, vape products

The Bureau of Internal Revenue (BIR) has reduced the floor price for cigarettes and vape products as the government took into account lower production costs of manufacturers.

- LOUISE MAUREEN SIMEON

In its latest revenue regulation, the BIR updated the floor prices for cigarettes, heated tobacco products and vaporized nicotine products. The BIR last issued its floor prices in May 2023.

Floor price is the minimum retail price set by the BIR taking into account the sum of the products' excise tax, value-added tax (VAT) and reasonable production cost.

For cigarettes, the new floor price for a pack is now at P78.58 from the previous P114.60.

For heated tobacco products, the floor price per pack has been reduced to P60.11 from the previous P120.40 for those with production cost of P19.54, excise tax of P34.13, and VAT of P6.44.