Philippines Passes Bills to Increase Tobacco and Vape Taxes and Strengthen Enforcement

The Philippines’ House of Representatives approved House Bill 11360, which introduces structured tax hikes on tobacco and vape products to curb revenue losses from illicit trade. Lawmakers voted 190-4 in favor of the measure, which will increase excise taxes by 2 percent every even-numbered year starting in 2026 and by 4 percent every odd-numbered year from 2027 to 2035. The bill also grants the President authority to raise tax rates by up to 5 percent if the national deficit surpasses targets.

Additionally, House Bill 11286, which mandates a track-and-trace system for tobacco products, was approved with 177 votes in favor. The measure requires secure digital markers on all tobacco products and imposes stricter penalties for illicit trade. Online platforms will also be held responsible for removing illegal listings. The Bureau of Internal Revenue and the Department of Finance will oversee enforcement through a newly established inter-agency council.