Civic advocacy group CitizenWatch Philippines expressed full support for House Bill No. 5207, a measure filed in the House of Representatives that seeks to remove the tax distinction between salt nicotine and freebase vape products and impose a uniform excise rate to close regulatory loopholes that have fueled the rapid spread of illicit vape products nationwide.
Authored by Ilocos Sur Rep. Kristine Singson-Meehan and several lawmakers, the bill aims to address how traders mislabel vape products to evade higher excise taxes—an industry practice that has contributed to billions of pesos in foregone revenues and the unchecked proliferation of cheap, unregulated vape devices and juices, many of which appeal directly to minors.
In the bill’s explanatory note, Singson-Meehan warned that unregistered and non-compliant vape products have flooded the market, “enticing the public, especially minors, due to their affordability, high puff count, enticing flavors, and widespread accessibility.”
She further pointed out that despite stricter guidelines requiring internal revenue stamps, illicit vape products continue to circulate widely.
“Even with the advent of Revenue Memorandum Circular No. 59-2024 requiring all vape products sold in the market to bear internal revenue stamps, several non-compliant products—which are presumed to be without the requisite excise tax payments—remain available in the market,” she wrote. “These illicit products evade regulatory oversight, posing serious threats to public health as they do not undergo the requisite safety and quality assurance testing.”
According to the Bureau of Internal Revenue (BIR), excise tax collections fell between 2021 and 2024, leading to an estimated ₱40 billion in revenue losses, a portion of which has been attributed to illicit vape trade and non-compliant vapor products.
From January to September 2025, the BIR visited 2,317 establishments with an estimated tax value of ₱156.79 million and filed 75 tax evasion cases against illicit vape retailers and sellers—including Flava, Denkat, Flare, and Tap Fog—totaling ₱711.3 million in liabilities.
“Illicit vape products have flooded the market because they’re cheap, unregulated, and widely available online,” said CitizenWatch convenor Orlando Oxales. “This bill finally gives enforcement agencies a clearer legal framework to stop these products from reaching our children.”
Data from enforcement agencies show that illicit vape shipments, often misdeclared or hidden among general cargo, continue to enter the country through both physical and online channels, putting additional pressure on regulators monitoring a fast-growing and technologically agile industry.
“Every untaxed and untested vape product represents stolen health funds and increased risk to Filipino consumers,” Oxales added. “If passed, House Bill 5207 will strengthen tax enforcement, protect legitimate businesses, and help curb youth exposure to illegal vape products.”
CitizenWatch said HB 5207 marks a “critical and urgent reform” to restore order to a market overwhelmed by unregulated sellers and deceptive traders.
