THE House Committee on Ways and Means is reviewing proposals to impose a unified excise tax rate on salt nicotine and freebase nicotine products as part of the government’s broader tax reform agenda aimed at advancing public health while maintaining a fair and effective taxation system.
Committee Chairman and Marikina 2nd District Rep. Romero Federico ‘Miro’ S. Quimbo said the proposal seeks to harmonize the excise tax treatment of various nicotine products to address existing disparities that may influence consumer choices and create market distortions.
‘The objective is to establish a level playing field by applying a uniform tax rate across nicotine vapor products while ensuring that taxation remains an effective public health tool,’ Quimbo said.
Under the proposal, the excise tax rates on salt nicotine and freebase nicotine products would be consolidated into a single rate. The proposed policy is intended to provide a more consistent tax framework for nicotine products while supporting the government’s long-term efforts to regulate nicotine consumption and strengthen tobacco-control measures.
According to Quimbo, the proposed tax structure should carefully balance public health objectives with the need to prevent excessive taxation from encouraging consumers to shift toward illicit or unregulated products.
‘The rate we are studying should be high enough to discourage use, especially among the youth, but calibrated enough to avoid creating stronger incentives for illicit trade in tobacco and vape products,’ he said.
Quimbo said that as deliberations continue, the committee is also evaluating the proposal’s possible effects on government revenues, public health outcomes, consumer behavior, and the illicit trade of nicotine products.
He added that the proposal forms part of the government’s broader package of compensatory tax reforms designed to generate sustainable revenues, support priority government programs, and create fiscal space for targeted tax relief measures benefiting Filipino families.