Measure regulating vape products to cut illicit trade, boost gov't revenues - industry group

An industry group has called for the passage of a measure to regulate vape products, claiming that it would reduce the illicit trade of cigarette alternatives and boost government revenues.

The vape bill is now up for President Rodrigo Duterte's signature after the Senate and House of Representatives ratified in January the bicameral conference report.

In a statement, the Federation of Philippine Industries (FPI) chairman Jesus Arranza said the signing of the vape bill into law will provide a “sweet spot for achieving the government’s revenue and health objectives.”

Arranza said that "by ensuring that only Department of Trade and Industry (DTI)-registered and Bureau of Internal Revenue (BIR)-compliant products are allowed to be sold, advertised, or distributed through lawful means—illicit trade of these products as well as their unintended use are minimized, if not totally eradicated."

He said that the bill aims to regulate the importation, manufacture, sale, packaging, distribution, use, and communication of vaporized nicotine and non-nicotine products, as well as novel tobacco products.

He said it also seeks to empower the DTI to order a recall or confiscation of non-compliant smoke-free products sold online and in physical stores.

It will ensure that the trade of cigarette alternatives such as e-cigarettes and heated tobacco products (HTPs) is regulated and monitored by the DTI, Arranza added. 

Arranza said the enactment of the vape bill would curb the proliferation of illicit and substandard devices that sometimes lead to serious accidents with unsuspecting consumers.

The FPI chairman noted the inclusion of provisions in the vape bill that “aim to combat illicit trade and promote a level playing field between and among foreign and domestic manufacturers, importers, and exporters of vaporized nicotine and non-nicotine products.”

Arranza said that with the authorization of the BIR to prescribe a floor price for these new products, the regulation of online sales by the vape bill is “very timely given the widespread shift to e-commerce from traditional trade channels.”

He said these reforms would make it difficult for unscrupulous, unregistered, and non-taxpaying traders to peddle their smuggled goods to innocent consumers.

“All these also guarantee correct, adequate and stable collection of taxes for the government while at the same time safeguarding local employment and investment of legitimate industries,” he said.

Health Secretary Francisco Duque III has been opposing the passage of the vape bill, stressing that usage of vapes and e-cigarettes increases the risk of heart and respiratory diseases. 

"Do not be misled by the Vape Regulation Bill. This bill is a Trojan horse to this administration's avowed policy to protect the health of the nation, especially our youth," Duque said in a webinar last month. —VBL, GMA News