Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. on Wednesday reminded sellers of vapor products, cigarettes and heated tobacco products of the criminal consequences of selling the products below the updated floor price under Revenue Regulations No. 16-2024 (RR No. 16-2024).
He said the prohibition covers e-marketplaces, online sellers, retail sellers and distributors of these products.
“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. 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,” Lumagui said.
Under Section 2 of RR No. 16-2024, the regulation also covers e-marketplaces and online sellers.
The updated floor prices under RR No. 16-2024 are P78.58 for a pack of cigarettes and P785.80 for a ream of cigarettes; P60.11 for a pack of heated tobacco sticks; P180.67 for a 2-ml pod of nicotine salt and P679.12 for a 10-ml bottle of nicotine salt (vapor products); P181.72 for a 10-ml bottle of conventional freebase or classic nicotine and P263.73 for a 30-ml bottle of conventional freebase or classic nicotine.
Section 145 (C) of the National Internal Revenue Code (NIRC), as amended, provides that selling of tobacco products at a price lower than the combined excise and value-added taxes imposed under the law is prohibited.
The seller of such products will be punished with a fine of not less than 10 times the amount of excise plus value-added taxes due but not less than P200,000 nor more than P500,000 and imprisonment of not less than four years but not more than six years.
Section 263 (A) of the NIRC, as amended, 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 will be punished with a fine of 10 times the amount of excise tax plus value-added tax but not less than P200,000 and imprisonment of not less than four years but not more than six years.
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