Manila: The Bureau of Internal Revenue (BIR) recently released the updated floor price of vape, cigarettes, and heated tobacco products, noting that sellers are prohibited from selling these products below the floor price.
The updated floor price was contained in the BIR’s Revenue Regulation (RR) 16-2024 issued on Sept. 16.
“We are warning all e-marketplaces, online sellers, retail sellers, suppliers and distributors that are selling vape, cigarettes, and heated tobacco products below the floor price. This is a criminal violation penalized by imprisonment of the seller,” BIR Commissioner Romeo Lumagui Jr. said in a statement on Wednesday.
“We are monitoring both online platforms and brick-and-mortar stores. Do not sell below the floor price. Take down all posts and offerings that are below the floor price,” he added.
Lumagui said Section 145 (C) of the National Internal Revenue Code (NIRC) provides that selling of tobacco products at a price lower than the combined excise and value-added taxes imposed und
er the law shall be prohibited.
The following table is the updated floor price under RR 16-2024:
The seller of such products shall be punished with a fine of not less than 10 times the amount of excise plus value-added taxes due but not less than PHP200,000 nor more than PHP500,000 and imprisonment of not less than four years but not more than six years.
Lumagui said Section 263 (A) of the NIRC also provides that any person who sells heated tobacco products and vapor products at a price lower than the combined excise and value-added taxes shall be punished with a fine of 10 times the amount of excise tax plus value-added tax but not less than PHP200,000 and imprisonment of not less than four years but not more than six years. (PNA)
Source: Philippines News Agency