The Department of Finance (DOF) is proposing a ban on disposable vapes citing concerns over safety, lack of regulations, and possible tax evasion.
DOF Secretary Ralph Recto said that most disposable vapes sold in the Philippines are unregistered with the Department of Trade and Industry (DTI) and avoid paying excise taxes.
“I think we should ban disposable vape products. Most if not all disposable vape products are unregistered with DTI and do not pay excise taxes,” Recto said.
A disposable vape is a non-rechargeable device that comes precharged and pre-filled with e-liquid. Unlike a rechargeable mod, disposable vapes do not require recharging or refilling.
He estimates that if they complied with regulations, their price would be much higher than the current market range of P122 to P439 per device.
Recto also expressed concerns that disposable vapes are designed to be attractive to minors, potentially leading them to vaping habits.
Recto, however, said that he has yet to inform the DTI, the agency responsible for regulating vapes and other new tobacco products, about his proposal to ban disposable vapes.
Under the Bureau of Internal Revenue regulations, a tax of P52 per milliliter is mandated for nicotine salt/salt-freebase, such as disposable vapes. Nevertheless, many vape makers are opting for conventional freebase variants due to the lower tax rate of P60 per 10 milliliters.
Recto,however, estimated that if disposable vape manufacturers fully comply with tax obligations, the selling price of their devices should not fall below P3,000 each.
“[Disposable vapes] should not be sold for less than probably P3,000,” Recto said.
In addition to tax non-compliance, Recto said that disposable vape products are purposely designed to appeal to minors, potentially luring them into the habit of vaping.
“We don’t know if it’s safe being unregulated. They do not pay taxes and are sold/appeal to minors,” he added.
Recto, meanwhile, issued a warning to online marketplaces that are selling disposable vapes, noting that tax authorities are now monitoring these online sales.
“They can face penalties under the vape law,” Recto said, referring to Republic Act 11900, also known as the Vaporized Nicotine and Non-Nicotine Products Regulation Act.
“We’re are looking at it,” he added.
