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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress 
Third Regular Session 
House Bill No. 11279
Introduced by Representatives KRISTINE SINGSON MEEHAN, ANTONIO 
“TONYPET” T. ALBANO, ANGELO MARCOS BARBA, RON P. SALO, SOLOMON 
R. CHUNGALAO, and MARGARITA IGNACIA B. NOGRALES-ALMARIO
AN ACT AMENDING SECTIONS 144, 145, 147 AND 263-A OF THE NATIONAL 
INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
The power of taxation is often referred to as the power to destroy, and therefore it must be 
exercised with caution to avoid unintended and unnecessary harm to a taxpayer's interests. Destroying 
legitimate businesses through excessive taxation, while illicit traders continue to dominate the market, 
is unacceptable. Such actions are counterproductive and undermine the nation's goal of fostering a 
stronger economy, which ultimately benefits the greater public. 
With the end view of reducing tobacco consumption and increasing government revenue to 
finance the country’s universal health care program, the Philippine tobacco industry has been 
continuously subjected to a series of legislative reforms which increase excise tax impositions. From 
2017 to 2023, the aggregate tax rate imposed per tobacco product increased by 100%. This resulted in 
most of the popular cigarette packs in the Philippines ranking as the most expensive cigarette packs 
among the member-countries of the Association of Southeast Asian Nation in terms of price in relation 
to income of individuals, at 6.8%.  
While it is in the country’s legitimate interest to impose higher taxes to sin products, the 
increase in the amount of excise taxes imposed on registered cigarette products unintendedly resulted 
in the proliferation of illicit and counterfeit products due to their low-entry point and affordability. A 
study of the historical incidence of illicit cigarettes traded in the Philippines showed that the total 
industry volume of illicit trade in the country more than doubled from 5.3% in 2020 to 13.2% in 2023. 
The number of smokers of illicit cigarettes likewise increased to an average of 13.9% in the same year. 
The twin objectives of the Sin Tax Law, which are to raise government revenues and protect 
public health, have come under immense strain from illicit trade.  Due to the prevalence of illicit tobacco 
products, the government’s excise tax collection has been declining since 2022. From a peak collection 
January 14, 2024
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of Php176 billion in 2021, tobacco excise revenues declined to Php160 billion in 2022. In 2023, the 
Bureau of Internal Revenue (“BIR”) reported that the government has lost around 15.9% or Php25.5 
billion in revenue due to illicit trade in cigarettes, ending collections in 2023 with Php135 billion. This 
lost revenue amounting to billions of pesos adversely affected the government’s funding for health 
programs. 
Public health initial gains were reflected in the World Health Organization (“WHO”) Global 
Adult Tobacco Survey (“GATS”) for the Philippines with smoking prevalence declining in the studies 
made in 2009, 2015 and 2021 from 29.70%, 23.8%, and finally down to 19.5% in 2021, respectively. 
This decline is validated by a similar trend in the Department of Science and Technology-Food and 
Nutrition Research Institute (“DOST-FNRI”) National Nutrition Survey, which showed a downward 
trend in adult smoking prevalence from 31% in 2008, to 25.4% in 2013 (a year after the passage of the 
Sin Tax Law), and further down to 18.5% in 2021.  However, the DOST-FNRI 2023 National Nutrition 
Survey showed a huge leap in smoking prevalence from 19.0% in 2021 to 24.4% in 2023. This shows 
that the Philippines is almost back to 2013 levels of smoking prevalence. 
Further, despite the legitimate objective behind the annual excise tax increase of discouraging 
nicotine consumption, a remarkable shift to e-cigarettes has been noted among legal age smokers. 
According to the GATS, e-cigarette usage in the Philippines has doubled from 2015 to 2021 with 2.1% 
or 1.6 million Filipinos using e-cigarette products. More recent data from the 2023 Survey of the DOST-
FNRI shows that 8.9% of legal age smokers use e-cigarettes, which translates to a sevenfold increase 
from the 2021 data of 1.2%. This likewise led to the proliferation of unregistered vapor products in the 
market which entice the public, especially the minors, due to their affordability, high volume capacity, 
high puff count, fruity flavors, and accessibility. The same DOST-FNRI 2023 National Nutrition 
Survey shows that 4.8% of adolescents aged 10-19 years old are current smokers, with 39.9% of 
adolescents using e-cigarettes. This is a huge jump from 2021 which found that 2.3% of adolescents 
were current smokers with only 7.5% preferring e-cigarettes, which translates to more than fivefold 
increase in just two years. Even with the advent of Revenue Memorandum Circular No. 59-2024 
requiring all vapor products sold in the market to bear internal revenue stamps, several non-compliant 
products which are presumed to be without the requisite excise tax payments, remain available in the 
market.  
To address the foregoing issues, it is imperative for the government to recalibrate its existing 
revenue measures and ensure that our tax laws do not unduly incentivize nor give premium to the illicit 
traders at the expense of legitimate businesses. Accordingly, this Bill allows legitimate businesses to 
recapture their market share by granting a suspension of one year to the automatic annual increase of 
five percent (5%) tax imposed among tobacco products, heated tobacco products, vapor products, 
cigars, and cigarettes. 
Through the proposed temporary suspension, the price gap of a legitimate cigarette product 
compared to illicit cigarettes is expected to be smaller which will benefit majority of Filipino smokers 
who come from lower-socioeconomic brackets with little disposable income for discretionary 
purchases, such as cigarettes. This is expected to encourage the consumers of illicit cigarettes to shift 
into purchasing legitimate products.  
Furthermore, there has been a proliferation of mislabeled vapor products, where some items are 
mislabeled as containing only freebase or conventional nicotine but actually contain salt nicotine, to 
evade the imposition of higher taxes. This, thus, resulted in millions of excise taxes evaded by illicit 


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traders who exploit the regulatory gaps under Republic Act No. 11467 and its implementing rules. 
Consequently, these illicit traders capitalize on such regulatory gaps to evade higher taxes imposed on 
certain nicotine varieties, ultimately undermining public health efforts and fair market practices. 
It is also important to emphasize that the distinction between salt nicotine and freebase or 
conventional nicotine under Republic Act No. 11467, no longer has a valid basis.  Thus, we believe that 
having a unified tax rate for all vapor products will substantially address the problem of misdeclaration 
by unscrupulous traders and, therefore, will be more beneficial for the government. This is also in 
accordance with the principle of uniformity in taxation, where articles or kinds of property of the same 
class are taxed at the same rate. 
Aside from the concerns on government revenue and increased usage, illicit trade is a threat to 
national security. Illicit trade of tobacco products, which may now include vapor products, have been 
linked to the financing of terrorist organizations. As early as 2015, the United States Department of 
Homeland Security has acknowledged the growing threat of illicit tobacco trafficking. In its paper, The 
Global Illicit Trade in Tobacco: A Threat to National Security, it was stated that tobacco smuggling 
may fuel transnational crime, corruption, and terrorism and, as it converges with other criminal 
activities, it tends to undermine the rule of law and the licit market economy, and creates greater 
insecurity and instability in many of today’s security “hot spots” around the world.  
All told, this Bill seeks to lessen the burden on the legitimate businesses, level the playing field, 
discourage illegal trading practices, ensure fair competition in the market, and strengthen national 
security. This measure is intended to support the sustainability and growth of legitimate enterprises, 
while ensuring receipt of government revenue through just and equitable taxes. 
In view of the foregoing, the immediate passage of this Bill is earnestly sought. 
KRISTINE SINGSON MEEHAN, 
ANTONIO “TONYPET” T. ALBANO 
ANGELO MARCOS BARBA 
RON P. SALO 
SOLOMON R. CHUNGALAO 
MARGARITA IGNACIA B. NOGRALES-ALMARIO 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
Nineteenth Congress 
Third Regular Session 
House Bill No. 11279 
Introduced by Representatives KRISTINE SINGSON MEEHAN, ANTONIO 
“TONYPET” T. ALBANO, ANGELO MARCOS BARBA, RON P. SALO, SOLOMON 
R. CHUNGALAO, and MARGARITA IGNACIA B. NOGRALES-ALMARIO
AN ACT AMENDING SECTIONS 144, 145, 147 AND 263-A OF THE NATIONAL 
INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SEC. 1. Section 144 of the National Internal Revenue Code of 1997, as amended by 
Republic Act. No. 11467, is hereby further amended to read as follows: 
“Sec. 144. Tobacco Products, Heated Tobacco Products,  and Vapor 
Products.— 
“(A) Tobacco Products.— 
“x x x 
The rates of tax imposed under this Section shall be increased by four percent 
(4%) every year thereafter effective on January 1, 2014, through revenue regulations 
issued by the Secretary of Finance. 
"PROVIDED, THAT THE INCREASE IN THE RATE OF TAX 
IMPOSED UNDER THIS SUBSECTION SHALL NOT APPLY FOR THE 
PERIOD EFFECTIVE JANUARY 1, 2026 UNTIL DECEMBER 31, 2026; 
PROVIDED FURTHER THAT THE RATE OF TAX UNDER THIS 
SUBSECTION SHALL BE INCREASED BY SIX PERCENT (6%) BEGINNING 
JANUARY 1, 2027 AND BIENNIALLY OR EVERY TWO YEARS 
THEREAFTER: PROVIDED FINALLY, THAT ON YEARS WITHOUT A 
SCHEDULED INCREASE IN THE RATE OF TAX AS PROVIDED HEREIN 


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EXCEPT 
ON 
THE 
YEAR 
2026, 
THE 
PRESIDENT, 
UPON 
THE 
RECOMMENDATION OF THE SECRETARY OF FINANCE, MAY 
INCREASE THE TAX RATE BY UP TO FIVE PERCENT (5%) IN CASE THE 
ACTUAL NATIONAL GOVERNMENT DEFICIT OF THE PREVIOUS YEAR 
EXCEEDS THE PROGRAMMED DEFICIT BY AN EQUIVALENT OF TWO 
PERCENT (2%) OF THE GROSS DOMESTIC PRODUCT OF THE 
PREVIOUS YEAR. 
 
“x x x 
 
“(B) Heated Tobacco Products.— There shall be levied, assessed and 
collected on heated tobacco products an excise tax at the rate prescribed below: 
 
“x x x 
 
The rates of tax imposed under this Subsection shall be increased by five 
percent (5%) every year effective on January 1, 2024 through revenue regulations 
issued by the Secretary of Finance. 
 
"PROVIDED, THAT THE INCREASE IN THE RATE OF TAX 
IMPOSED UNDER THIS SUBSECTION SHALL NOT APPLY FOR THE 
PERIOD EFFECTIVE JANUARY 1, 2026 UNTIL DECEMBER 31, 2026; 
PROVIDED FURTHER THAT THE RATE OF TAX UNDER THIS 
SUBSECTION SHALL BE INCREASED BY SIX PERCENT (6%) BEGINNING 
JANUARY 1, 2027 AND BIENNIALLY OR EVERY TWO YEARS 
THEREAFTER: PROVIDED FINALLY, THAT ON YEARS WITHOUT A 
SCHEDULED INCREASE IN THE RATE OF TAX AS PROVIDED HEREIN 
EXCEPT 
ON 
THE 
YEAR 
2026, 
THE 
PRESIDENT, 
UPON 
THE 
RECOMMENDATION OF THE SECRETARY OF FINANCE, MAY 
INCREASE THE TAX RATE BY UP TO FIVE PERCENT (5%) IN CASE THE 
ACTUAL NATIONAL GOVERNMENT DEFICIT OF THE PREVIOUS YEAR 
EXCEEDS THE PROGRAMMED DEFICIT BY AN EQUIVALENT OF TWO 
PERCENT (2%) OF THE GROSS DOMESTIC PRODUCT OF THE 
PREVIOUS YEAR. 
 
“x x x 
 
 
“The Bureau of Internal Revenue is mandated to issue a revenue regulation 
prescribing the floor price or the minimum price of heated tobacco products taking into 
account THE APPLICABLE TAXES, REASONABLE PRODUCTION COST, 
AND 
TRADE 
MARGINS 
FOR 
THE 
LOWEST 
PRICED 
BRANDS 
REGISTERED WITH THE BIR [the sum of the excise and value- added taxes as 
provided herein]. 
 


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“(C) Vapor Products  — There shall be levied, assessed and collected on vapor 
products [ an excise tax at the rates prescribed below] CONTAINING ANY LIQUID 
SUBSTANCE, REGARDLESS OF NICOTINE CONTENT, INCLUDING 
NICOTINE-FREE LIQUIDS OR ANY SIMILAR PRODUCT, WHETHER 
CLASSIFIED 
AS 
NICOTINE 
SALT 
OR 
SALT 
NICOTINE, 
OR 
CONVENTIONAL 'FREEBASE' OR 'CLASSIC' NICOTINE,  OR OTHER 
SIMILAR SUBSTANCES, DEVICES, OR INNOVATIONS THAT ARE 
INTENDED TO BE USED AS A SUBSTITUTE FOR CIGARETTES OR 
OTHER TOBACCO PRODUCTS, AN EXCISE TAX AT THE RATE OF 
SIXTY-SIX PESOS AND FIFTEEN CENTAVOS (P66.15) PER MILLILITER 
OR A FRACTION THEREOF, EFFECTIVE IMMEDIATELY OR UPON THE 
EFFECTIVITY OF THIS ACT. 
 
[“(1) Nicotine Salt or Salt Nicotine.— There shall be levied, assessed and 
collected on any liquid substance, regardless of nicotine content, including nicotine-
free liquids or any similar product, further classified as nicotine salt or salt nicotine, an 
excise tax based on the following schedules: 
 
“Effective on January 1, 2020, Thirty-seven pesos (₱37.00) per milliliter or a 
fraction thereof; 
 
“Effective on January 1, 2021, Forty-two pesos (₱42.00) per milliliter or a 
fraction thereof; 
 
"Effective on January 1, 2022, Forty-seven pesos (₱47.00) per milliliter or a 
fraction thereof; and 
 
“Effective on January 1,2023, Fifty-two pesos (₱52.00) per milliliter or a 
fraction thereof. 
 
“Provided, That the rates of tax imposed under this Subsection shall be 
increased by five percent (5%) every year effective on January 1, 2024, through 
revenue regulations issued by the Secretary of Finance. 
 
“(2) Conventional ‘Freebase’ or ‘Classic’ Nicotine.— There shall be levied, 
assessed and collected on any liquid substance, regardless of nicotine content, 
including nicotine-free liquid or any similar product, further classified as conventional 
‘freebase’ or ‘classic’ nicotine an excise tax based on the following schedules: 
 
“Effective on January 1, 2020, Forty-five pesos (₱45.00) per ten (10) milliliters 
or a fraction thereof; 
 
“Effective on January 1, 2021, Fifty pesos (₱50.00) per ten (10) milliliters or a 
fraction thereof; 


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‘Effective on January 1, 2022, Fifty-five pesos (₱55.00) per ten (10) milliliters 
of a fraction thereof; and 
 
‘Effective on January 1, 2023, Sixty pesos (₱60.00) per ten (10) milliliters or a 
fraction thereof. 
 
"Provided, That the rates of tax imposed under this Subsection shall be 
increased by five percent (5%) every year effective January 1, 2024, through revenue 
regulations to be issued by the Secretary of Finance.] 
 
"THE RATE OF TAX IMPOSED UNDER THIS SUBSECTION SHALL 
BE INCREASED BY SIX PERCENT (6%) BEGINNING JANUARY 1, 2027 
AND BIENNIALLY OR EVERY TWO YEARS THEREAFTER: PROVIDED, 
THAT ON YEARS WITHOUT A SCHEDULED INCREASE IN THE RATE OF 
TAX 
AS 
PROVIDED 
HEREIN, 
THE 
PRESIDENT, 
UPON 
THE 
RECOMMENDATION OF THE SECRETARY OF FINANCE, MAY 
INCREASE THE TAX RATE BY UP TO FIVE PERCENT (5%) IN CASE THE 
ACTUAL NATIONAL GOVERNMENT DEFICIT OF THE PREVIOUS YEAR 
EXCEEDS THE PROGRAMMED DEFICIT BY AN EQUIVALENT OF TWO 
PERCENT (2%) OF THE GROSS DOMESTIC PRODUCT OF THE 
PREVIOUS YEAR. 
 
 
 
“x x x” 
 
 
 
“The Bureau of Internal Revenue is mandated to issue a revenue regulation 
prescribing the floor price or the minimum price of vapor products taking into account 
THE APPLICABLE TAXES, REASONABLE PRODUCTION COST, AND 
TRADE MARGINS FOR THE LOWEST PRICED BRANDS REGISTERED 
WITH THE BIR [the sum of the excise and value- added taxes as provided herein]. 
 
SEC. 2. Section 145 of the National Internal Revenue Code of 1997, as amended by 
Republic Act No. 11346, is hereby further amended to read as follows: 
 
“Sec. 145. Cigars and Cigarettes. –  
 
“(A) Cigars. – There shall be levied, assessed and collected on cigars an excise 
tax AS FOLLOWS:  
 
EFFECTIVE ON JANUARY 1, 2025, SIXTY-SIX PESOS AND FIFTEEN 
CENTAVOS (P66.15) PER CIGAR; 
[in accordance with the following schedule: 
 
(1) 
Effective on January 1, 2013 


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(a) 
An ad valorem tax equivalent to twenty percent (20%) of the net retail 
price (excluding the excise tax and the value-added tax) per cigar; and 
 
(b) 
In addition to the ad valorem tax herein imposed, a specific tax of Five 
pesos (P5.00) per cigar. 
 
In addition to the ad valorem tax herein imposed, the specific tax rate of Five 
pesos (P5.00) imposed under this subsection shall be increased by five percent (5%) 
effective on January 1, 2024 through revenue regulations issued by the Secretary of 
Finance;]  
 
"THE RATE OF TAX IMPOSED UNDER THIS SUBSECTION SHALL 
BE INCREASED BY SIX PERCENT (6%) BEGINNING JANUARY 1, 2027 
AND BIENNIALLY OR EVERY TWO YEARS THEREAFTER: PROVIDED, 
THAT ON YEARS WITHOUT A SCHEDULED INCREASE IN THE RATE OF 
TAX 
AS 
PROVIDED 
HEREIN, 
THE 
PRESIDENT, 
UPON 
THE 
RECOMMENDATION OF THE SECRETARY OF FINANCE, MAY 
INCREASE THE TAX RATE BY UP TO FIVE PERCENT (5%)  IN CASE THE 
ACTUAL NATIONAL GOVERNMENT DEFICIT OF THE PREVIOUS YEAR 
EXCEEDS THE PROGRAMMED DEFICIT BY AN EQUIVALENT OF TWO 
PERCENT (2%) OF THE GROSS DOMESTIC PRODUCT OF THE 
PREVIOUS YEAR.” 
 
(2) 
“x x x 
 
“(B) Cigarettes Packed by Hand. – There shall be levied, assessed and 
collected on cigarettes packed by hand an excise tax based on the following schedules: 
 
Effective on January 1, 2020, Forty-Five pesos (P45.00) per pack; 
 
Effective on January 1, 2021, Fifty pesos (P50.00) per pack; 
 
Effective on January 1, 2022, Fifty-five pesos (P55.00) per pack; 
 
Effective on January 1, 2023, Sixty pesos (P60.00) per pack; 
 
The rates of tax imposed under this subsection shall be increased by five percent 
(5%) every year effective on January 1, 2024, through revenue regulations issued by 
the Secretary of Finance; PROVIDED, THAT THE SCHEDULED YEARLY 
INCREASE SHALL NOT APPLY FOR THE PERIOD EFFECTIVE JANUARY 
1, 2026 UNTIL DECEMBER 31, 2026; PROVIDED FURTHER THAT A SIX 
PERCENT (6%) INCREASE ON THE SPECIFIC TAX RATE SHALL BE 
IMPOSED BEGINNING JANUARY 1, 2027 AND BIENNIALLY OR EVERY 


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TWO YEARS THEREAFTER: PROVIDED FINALLY, THAT ON YEARS 
WITHOUT A SCHEDULED INCREASE IN THE RATE OF TAX AS 
PROVIDED HEREIN EXCEPT ON THE YEAR 2026, THE PRESIDENT, 
UPON THE RECOMMENDATION OF THE SECRETARY OF FINANCE, 
MAY INCREASE THE TAX RATE BY UP TO FIVE PERCENT (5%) IN CASE 
THE ACTUAL NATIONAL GOVERNMENT DEFICIT OF THE PREVIOUS 
YEAR EXCEEDS THE PROGRAMMED DEFICIT BY AN EQUIVALENT OF 
TWO PERCENT (2%) OF THE GROSS DOMESTIC PRODUCT OF THE 
PREVIOUS YEAR. 
 
“x x x 
 
“(C) Cigarettes Packed by Machine. - There shall be levied, assessed and 
collected on cigarettes packed by machine a tax at the rates prescribed below: 
 
Effective on January 1, 2020, Forty-Five pesos (P45.00) per pack; 
 
Effective on January 1, 2021, Fifty pesos (P50.00) per pack; 
 
Effective on January 1, 2022, Fifty-five pesos (P55.00) per pack; 
 
Effective on January 1, 2023, Sixty pesos (P60.00) per pack; 
 
“The rates of tax imposed under this subsection shall be increased by five 
percent (5%) every year effective on January 1, 2024, through revenue regulations 
issued by the Secretary of Finance; PROVIDED, THAT THE SCHEDULED 
YEARLY INCREASE SHALL NOT APPLY FOR THE PERIOD EFFECTIVE 
JANUARY 1, 2026 UNTIL DECEMBER 31, 2026; PROVIDED FURTHER 
THAT A SIX PERCENT (6%) INCREASE ON THE SPECIFIC TAX RATE 
SHALL BE IMPOSED BEGINNING JANUARY 1, 2027 AND BIENNIALLY 
OR EVERY TWO YEARS THEREAFTER: PROVIDED FINALLY, THAT ON 
YEARS WITHOUT A SCHEDULED INCREASE IN THE RATE OF TAX AS 
PROVIDED HEREIN EXCEPT ON THE YEAR 2026, THE PRESIDENT, 
UPON THE RECOMMENDATION OF THE SECRETARY OF FINANCE, 
MAY INCREASE THE TAX RATE BY UP TO FIVE PERCENT (5%) IN CASE 
THE ACTUAL NATIONAL GOVERNMENT DEFICIT OF THE PREVIOUS 
YEAR EXCEEDS THE PROGRAMMED DEFICIT BY AN EQUIVALENT OF 
TWO PERCENT (2%) OF THE GROSS DOMESTIC PRODUCT OF THE 
PREVIOUS YEAR. 
 
“x x x” 
 
 
“THE BUREAU OF INTERNAL REVENUE IS MANDATED TO ISSUE 
A REVENUE REGULATION PRESCRIBING THE FLOOR PRICE OR THE 


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MINIMUM PRICE OF CIGARETTES TAKING INTO ACCOUNT THE 
APPLICABLE TAXES, REASONABLE PRODUCTION COST, AND TRADE 
MARGINS FOR THE LOWEST PRICED BRANDS REGISTERED WITH THE 
BIR. 
 
 
Selling of CIGARETTES AT A PRICE LOWER THAN THE FLOOR 
PRICE OR MINIMUM PRICE PRESCRIBED BY THE BUREAU OF 
INTERNAL REVENUE shall be prohibited.  The seller of such products shall be 
punished with a fine of not less than ten (10) times the amount of excise plus value-
added taxes due but not less than Two hundred thousand pesos (P200,000.00) nor more 
than Five hundred thousand pesos (500,000.00), and imprisonment of not less than four 
(4) years but not more than six (6) years.  
 
[The BIR is mandated to issue revenue regulation prescribing the cigarette floor price 
or the minimum cigarette price taking into account the sum of the excise and value- 
added taxes as provided herein.] 
 
 
xxx” 
 
SEC. 3. Section 147 of the National Internal Revenue Code of 1997, as amended by 
Republic Act No. 11346, is hereby further amended to read as follows: 
 
“SEC. 147. Definition of Terms. When used herein and in statements or official 
forms prescribed hereunder, the following terms shall have the meaning indicated: 
 
(a) 
 
(b) ‘Cigarettes’ mean all rolls of finely-cut leaf tobacco, or any substitute therefor, 
wrapped in paper or in any other material that are consumed via combustion of the 
tobacco, INCLUDING “ROLL-YOUR-OWN” TOBACCO PRODUCTS.” 
 
“xxx” 
 
SEC. 4. Section 263-A of the National Internal Revenue Code of 1997, as amended by 
Republic Act No. 11346, is hereby further amended to read as follows: 
 
“Sec. 263-A. Selling of Heated Tobacco Products and Vapor Products at [a 
lower] PRICE LOWER THAN the [combined excise and value-added taxes] FLOOR 
PRICE OR MINIMUM PRICE. – Any person who sells heated tobacco products and 
vapor products at a price lower than the [combined excise and value-added taxes] 
FLOOR PRICE OR MINIMUM PRICE PRESCRIBED BY THE BUREAU OF 
INTERNAL REVENUE  shall be punished with a fine of not less than ten (10) times 
the amount of excise plus value-added taxes due but not less than Two hundred 
thousand pesos (P200,000.00) nor more than Five hundred thousand pesos 


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(500,000.00), and imprisonment of not less than four (4) years but not more than six 
(6) years.   
 
SEC. 5. Separability Clause. - If any provision of this Act is declared unconstitutional 
or invalid, other parts or provision hereof not affected thereby shall continue to be in full force 
and effect. 
 
SEC. 6. Repealing Clause. - All laws, orders, issuances, circulars, rules and regulation 
or parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
 
SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation. 
 
Approved