A LEADER of the House of Representatives on Wednesday said the lower chamber will repeal the law taxing heated tobacco and vapor products.
This, after President Duterte said he will ban the use of heated tobacco and vapor products in public, as well as the importation of such devices.
In an interview, House Committee on Ways and Means Chairman Joey Sarte Salceda said they will repeal Section 2 of Republic Act 11346 even if it means a revenue loss of P1.4 billion for the government.
However, Salceda assured the public that implementation of the Universal Health Care will not be affected. Under the law, taxes from the “sin” tax products shall be allotted for UHC implementation.
“We will offset [the losses] from alcohol products. So I don’t think we will allow the UHC to be jeopardized by the ban. In fact, it can be helpful if the DOH [Department of Health] can implement the ban on vapes,” he said.
RA 11346, signed by President Duterte in July, imposes a new tax on electronic cigarettes, including heated tobacco and vapor products. The law imposes a minimum P10 excise tax for 0-10 ml of liquid solution or gel starting January 1 next year. Every 10.01-20 ml is taxed P20; 20.01-30 ml, P30; 30.01-40 ml, P40; 40.01-50 ml, P50; and for more than 50 ml, P50 plus P10 for every additional 10 ml. Starting January 1, 2021, the rate will be increased by 5 percent every year.
“In the bicameral conference committee hearing [of House Bill 1026 ], the House Committee on Ways and Means will seek the repeal of Section 2 of Republic Act 11346 to implement the position of the President to ban vape and heated tobacco products,” he said.
“Tax policy will no longer be one of the state tools in controlling the negative effects of vape on health. It becomes now totally a health issue, no longer a tax issue. We don’t recognize vape anymore as a product that is being taxed. Just like there’s no taxes on prostitution,” he added.
In August, the House approved on third and final reading HB 1026 raising anew the excise taxes on alcohol products, heated tobacco and vapor products.
The measure stipulates that heated tobacco products shall now be levied with an excise tax rate of P45 per pack next year, with an incremental increase of P5 the following years until 2023. The tax imposed shall increase by 5 percent each year after that, starting in 2024.
Smoking ban
Meanwhile, Deputy Majority Leader Rep. Marlyn Alonte on Wednesday filed House Bill 5561, or the proposed Tobacco and Vaping Regulation Act to expand the smoking ban to include vaping products.
“There is mounting evidence of the harmful effects of electronic cigarettes on public health and safety, ranging from lung injury from the liquid nicotine and chemicals, to bone fractures and burns from exploding vaping devices. Congress must step forward to protect the people,” said Alonte.
“High excise taxes are not enough to effectively counter this new health menace. The same strict regulations applied to smoking must be applied to vaping,” she added.
Alonte said this bill is necessary to protect both the young and adults who have become addicted to the chemicals vaporized with the use of electronic device systems.
She said the bill covers electronic devices that vaporize nicotine and any other chemicals.