BIR Prohibits Sale of Vape, Cigarettes, Heated Tobacco Below Floor Price

The Bureau of Internal Revenue (BIR) has implemented a ban on the sale of vapor products, cigarettes, and heated tobacco products below their mandated floor price, which accounts for both excise and value-added taxes (VAT). This follows the issuance of Revenue Regulation No. 16-2024 by Internal Revenue Commissioner Romeo Lumagui Jr., updating the floor prices of these products.

Lumagui warned that selling below the floor price is a criminal offense, punishable by imprisonment for sellers. The BIR is closely monitoring online and physical stores to ensure compliance.

Violators face fines of no less than 10 times the excise and VAT due (minimum P200,000, maximum P500,000) and imprisonment of four to six years, as outlined in Section 145 (C) and Section 263 (A) of the National Internal Revenue Code.

Sellers are urged to remove any listings or offers that do not comply with the new regulations.