Gatchalian to block excise tax cuts on tobacco, vapor products

Senator Sherwin Gatchalian, chairperson of the Senate Committee on Ways and Means, will block any measure that lowers excise taxes on tobacco and vapor products, asserting that such cuts are ineffective in combating illicit trade.

Gatchalian emphasized that the committee's focus is on eliminating illicit trade, which negatively impacts revenue collection and health outcomes.

He stated that past hearings did not demonstrate that lowering cigarette taxes effectively combats illicit trade.

The Senator vowed not to allow the cigarette component of the bill to be included in the bicameral conference committee, suggesting that if the House insists, discussions should resume in the 20th Congress.

Current data from the Bureau of Customs and Bureau of Internal Revenue show a significant number of illicit product seizures, but only a small fraction lead to court cases.

The Bureau of Internal Revenue had previously suggested that cigarette and heated tobacco products should share the same tax rate, while vapor products should be taxed higher due to different consumption patterns.