Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. KENNETH T. GATCHALIAN 
EXPLANATORY NOTE 
The 2023 National Nutrition Survey (DOST-FNRI) reported a sharp rise in smoking: 
•
Adults (20+): 18.5% (2021) → 23.2% (2023)
•
Adolescents (10–19): 7.5% → 39.9%
•
Adults (20–59): 1.4% → 9.9%
This increase is linked to easier access to products, flavored vapor products, and lower 
taxes on heated tobacco products (HTPs). 
Under current tax rules, nicotine salt is taxed higher than freebase nicotine, allowing 
misdeclaration and lower selling prices. There are no penalties for violating the flavor 
ban, making flavored vapes widely available. Lower HTP taxes also push users toward 
these products. 
To address these issues, this bill proposes: 
1. A unitary excise tax of ₱66.15/mL for both nicotine salt and freebase nicotine.
2. A specific tax of ₱120/device for vapor products and ₱500/device for HTPs.
3. Penalties for making, importing, selling, or possessing flavored vapes.
4. An HTP excise tax increase from ₱35.83 → ₱41/pack (20 units).
July 30, 2025
11:32 am
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In order to curb smoking and vaping prevalence, the immediate passage of this bill is 
earnestly sought. 
KENNETH T. GATCHALIAN 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. KENNETH T. GATCHALIAN 
AN ACT 
AMENDING SECTIONS 8, 144, AND 225, AND ADDING A NEW SECTION 263-B 
AND 263-C OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS 
AMENDED, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 8 of the National Internal Revenue Code of 1997, as amended, 
is hereby further amended to read as follows: 
“SEC. 8. Duty of the Commissioner to Ensure the Provision and 
Distribution of Forms, Receipts, Certificates, and Appliances, and the 
Acknowledgment of Payment of Taxes. 
(A) Provision and Distribution to Proper-Officials. – Any law to the contrary
notwithstanding, it shall be the duty of the Commissioner, among other things, to 
prescribe, provide, and distribute to the proper officials the requisite licenses; 
internal revenue stamps; unique, secure and non-removable identification markings 
(hereafter called unique identification markings), such as codes or stamps, be affixed 
to or form part of all unit packets and packages and any outside packaging of 
CIGARS AND cigarettes,  HEATED TOBACCO PRODUCTS, AND VAPOR 
PRODUCTS and bottles of distilled spirits; labels and other forms; certificates; 
bonds; records; invoices; books; receipts; instruments; appliances and apparatus 
used in administering the laws falling within the jurisdiction of the Bureau. For this 
purpose, internal revenue stamps, or other markings and labels shall be caused by 
the Commissioner to be printed with adequate security features. 
Internal revenue stamps, whether of a bar code or fuson design, or other 
markings shall be firmly and conspicuously affixed or printed on each pack of cigars 
and cigarettes, HEATED TOBACCO PRODUCTS, AND VAPOR PRODUCTS, and 
bottles of distilled spirits subject to excise tax in the manner and form as prescribed 
by the Commissioner, upon approval of the Secretary of Finance. 
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To further improve tax administration, CIGARS AND cigaretteS, HEATED 
TOBACCO PRODUCTS, VAPOR PRODUCTS, and alcohol manufacturers shall be 
required to install automated volume-counters of packs and bottles to deter over-
removals and misdeclaration of removals.”  
SECTION 2. Section 144 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows:  
“Sec. 144. Tobacco Products, Heated Tobacco Products, and Vapor 
Products. –   
“x x x   
“(B) Heated Tobacco Products. – There shall be levied, assessed and 
collected on heated tobacco products an excise tax at the rate OF FORTY-ONE 
PESOS (P41.00) PER PACK OF TWENTY (20) UNITS OR PACKAGING 
COMBINATIONS OF NOT MORE THAN TWENTY (20) UNITS. [prescribed 
below:  
Effective on January 1, 2020, Twenty-five pesos (P25.00) per pack of twenty 
(20) units or packaging combinations of not more than twenty (20) units;  
Effective on January 1, 2021, Twenty-seven pesos and fifty centavos (P27.50) 
per pack of twenty (20) units or packaging combinations of not more than twenty 
(20) units;  
Effective on January 1, 2022, Thirty pesos (P30.00) per pack of twenty (20) 
units or packaging combinations of not more than twenty (20) units; and  
Effective on January 1,2023, Thirty-two pesos and fifty centavos (P32.50) per 
pack of twenty (20) units or packaging combinations of not more than twenty (20) 
units.]  
“The rates of tax imposed under this Subsection, shall be increased by five 
percent (5%) every year effective on January 1, [2024] 2026 through revenue 
regulations issued by the Secretary of Finance.  
“x x x  
(C) HEATED TOBACCO PRODUCT DEVICE. – EFFECTIVE JANUARY 1, 
2026, AN EXCISE TAX EQUIVALENT TO FIVE HUNDRED PESOS (P500.00) 
PER HEATED TOBACCO PRODUCT DEVICE SHALL BE IMPOSED.  
“[(C)](D) 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  NIC
OTINE-FREE  
LIQUIDS 
OR 
ANY 
SIMILAR 
PRODUCT, 
WHETHER 
CLASSIFIED AS NICOTINE SALT OR SALT NICOTINE, OR CONVENTIONAL 
‘FREEBASE’ OR ‘CLASSIC’ NICOTINE, AN EXCISE TAX AT THE RATE OF 
SIXTY-SIX PESOS AND FIFTEEN CENTAVOS (P66.15) PER MILLILITER OR 
A FRACTION THEREOF.  
[“(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 (P37.00) per milliliter or a 
fraction thereof;  
“Effective on January 1, 2021, Forty-two pesos (P42.00) per milliliter or a 
fraction thereof;  
“Effective on January 1, 2022, Forty-seven pesos (P47.00) per milliliter or a 
fraction thereof; and   
“Effective on January 1, 2023, Fifty-two pesos (P52.00) 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 (P45.00) per ten (10) milliliters 
or a fraction thereof;  
“Effective on January 1, 2021, Fifty pesos (P50.00) per ten (10) milliliters or a 
fraction thereof;  
“Effective 
on  
January 
1,  
2022,  
Fifty-five 
pesos  
(P55.00)  
per 
ten  (10)  milliliters  of  a fraction thereof; and  
“Effective on January 1, 2023, Sixty pesos (P60.00) 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] 2026, 
through revenue regulations to be issued by the Secretary of Finance.  
“x x x  
“Unit packets and any outside wrapping of vapor products and other similar 
products shall carry a health warning compliant with Republic Act No. 10643, 
otherwise known as ‘The Graphic Health Warnings Law’ AND INTERNAL 
REVENUE STAMPS UNDER THIS CODE.  
“x x x.”  
(E) VAPOR PRODUCT DEVICE. – EFFECTIVE JANUARY 1, 2026, AN 
EXCISE TAX EQUIVALENT TO ONE HUNDRED TWENTY PESOS (P120.00) 
PER VAPOR PRODUCT DEVICE, INCLUDING DISPOSABLE, REFILLABLE, 
OR OTHER SIMILAR DEVICE, SHALL BE IMPOSED.  
SEC. 3.  Section 225 of the National Internal Revenue Code of 1997, as amended, 
is hereby further amended to read as follows:  
SEC. 225. When Property to be Sold or Destroyed. –  
“x x x   
Distilled spirits, liquors, cigars, cigarettes, HEATED TOBACCO PRODUCTS, 
VAPOR PRODUCTS, other manufactured products of tobacco, and all apparatus 
used in or about the illicit production of such articles may, upon forfeiture, be 
destroyed by order of the Commissioner, when the sale of the same for consumption 


or use would be injurious to public health or prejudicial to the enforcement of the 
law.  
“x x x.”   
SEC. 4.  A new Section 263-B shall be introduced in the National Internal Revenue 
Code of 1997, as amended. The new Section 263-B shall read as follows:  
SEC. 
263-B. 
MANUFACTURING, 
IMPORTING, 
SELLING, 
OR 
DISTRIBUTION OF FLAVORED VAPOR PRODUCTS. – ANY PERSON WHO 
MANUFACTURES, IMPORTS, SELLS, OR DISTRIBUTES VAPOR PRODUCTS 
WITH FLAVORING OTHER THAN PLAIN TOBACCO OR PLAIN MENTHOL IN 
VIOLATION OF SECTION 144 (C) OF THIS CODE SHALL BE PUNISHED 
WITH A FINE OF NOT LESS THAN ONE MILLION FIVE HUNDRED 
THOUSAND PESOS (P1,500,000.00) BUT NOT MORE THAN FIFTEEN 
MILLION PESOS (P15,000,000.00) AND IMPRISONMENT FOR A TERM OF 
NOT LESS THAN SIX (6) YEARS AND ONE (1) DAY BUT NOT MORE THAN 
TWELVE (12) YEARS.  
SEC. 5.  A new Section 263-C shall be introduced in the National Internal Revenue 
Code of 1997, as amended. The new Section 263-C shall read as follows:   
SEC. 263-C. UNLAWFUL POSSESSION OF FLAVORED VAPOR 
PRODUCTS. – IT SHALL BE UNLAWFUL FOR ANY PERSON TO HAVE IN HIS 
POSSESSION VAPOR PRODUCTS WITH FLAVORING OTHER THAN PLAIN 
TOBACCO OR PLAIN MENTHOL WHICH ARE PROHIBITED UNDER SECTION 
144 (C) OF THIS CODE. ANY PERSON WHO HAS BEEN FOUND GUILTY 
UNDER THIS SECTION SHALL BE SUBJECT TO THE FOLLOWING 
PENALTIES:  
i.          ON THE FIRST OFFENSE, A FINE OF ONE HUNDRED 
THOUSAND PESOS (P100,000.00);  
ii. ON THE SECOND OFFENSE, A FINE OF THREE HUNDRED 
THOUSAND PESOS (P300,000.00); AND  
iii. ON THE THIRD OFFENSE, A FINE OF FIVE HUNDRED 
THOUSAND PESOS (P500,000.00) OR IMPRISONMENT OF NOT LESS 
THAN ONE (1) MONTH AND ONE (1) DAY BUT NOT MORE THAN SIX 
(6) MONTHS.  
SEC. 6. 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. 7. 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. 8. This Act shall take effect after fifteen (15) days following its complete 
publication in the Official Gazette or in a newspaper of general circulation.