E-cigarette and vape manufacturers and distributors expressed support for the government’s push to more efficiently collect taxes and run after tax evaders, including those in the vapor products sector.
In a statement yesterday, Philippine E-cigarette Industry Association (PECIA) president Joey Dulay said the industry group is fully committed to comply with government regulations, including the laws covering the so-called “sin” industries.
However, an ongoing investigation of the House committee on ways and means found a popular brand not only allegedly aggressively marketing its vaping devices to minors through social media, but also reportedly depriving the government of much-needed tax revenues.
“We take any allegations of underdeclaration seriously and are dedicated to upholding transparency and accountability within our members,” Dulay said.
“While we have no direct control among non-members in the industry, we continually remind and cascade through our information channels news and facts about compliance,” he added.
To recall, the House panel had found out after laboratory testing that the vape brand supposedly underdeclared its imports from China by labeling them as having freebase nicotine, rather than nicotine salt, as ingredient.
The prevailing excise tax on freebase nicotine is lower than the levy on nicotine salt found in the brand’s vapes.
Cagayan de Oro City 2nd District Rep. Rufus Rodriguez had estimated more than P800 million in taxes allegedly unpaid by the company behind the brand.
“PECIA has established internal mechanisms to ensure members adhere to tax obligations, and we are open to collaborating with government authorities to address any concerns,” Dulay said.
“Rest assured, we prioritize lawful practices to contribute positively to the nation’s revenue goals,” he added.
As the voice of the domestic e-cigarette sector, PECIA urges legitimate players to pay the right amount of taxes in order to contribute to the economy.
