REVENUE REGULATIONS (RR) NO. 017-2025
This Circular clarifies that pursuant to Section 244 of the National Internal Revenue Code of 1997, as amended, these Regulations are hereby promulgated to update the floor price of cigarettes, heated tobacco products, and vapor products prescribed in RR No. 016-2024.
A. Cigarettes
| Packaging | Content per Packaging | Production Cost/ Total Landed Cost | Excise Tax (2025) | Value Added Tax (VAT) (12%) | Total tax | Floor price |
| Pack | 20 sticks | 10.25 | 66.15 | 9.168 | 75.318 | 85.57 |
| Ream | 10 packs | 102.50 | 661.50 | 91.68 | 753.18 | 855.68 |
B.Heated Tobacco Products
| Packaging | Content per Packaging | Production Cost/ Total Landed Cost | Excise Tax (2025) | VAT (12%) | Total tax | Floor price |
| Pack | 20 sticks | 19.04 | 35.84 | 6.59 | 42.43 | 61.47 |
C. Vapor Products
1. Nicotine Salt or Salt Nicotine
| Packaging | Pack/Fill | Content per Packaging | Production Cost/ Total Landed Cost | Excise Tax (2025) | VAT (12%) | Total tax | Floor price |
| Pod | 1 | 2 ml | 200.68 | 114.66 | 37.84 | 152.50 | 353.18 |
2. Conventional ‘Freebase’ or ‘Classic’ Nicotine
| Packaging | Pack/Fill | Content per Packaging | Production Cost/ Total Landed Cost | Excise Tax (2025) | VAT (12%) | Total tax | Floor price |
| Disposable Pod | 1 | 10 ml | 97.52 | 66.15 | 19.64 | 85.79 | 183.31 |
| Prefilled Pod | 1 | 10 ml | 90.00 | 66.15 | 18.74 | 84.89 | 174.89 |
| Disposable Device | 1 | 10 ml | 110.80 | 66.15 | 21.23 | 87.38 | 198.18 |
NOTE: The foregoing costs are based on submitted Manufacturer’s/Importer’s Sworn Statements. This shall serve only as a guide/reference in the absence of other documents/proof of actual prices.
Selling of tobacco or vapor products at a price lower than the combined excise tax and VAT imposed shall be prohibited. Any violator of this regulation shall be subject to fine, and imprisonment as provided below.
| Legal Basis | Violator | Penalties | |
| Fine | Imprisonment | ||
| Under Section 145 (C) of the NIRC of 1997, as amended | Seller of cigarettes packed by machine | Not less than ten (10) times the amount of excise plus value-added taxes due but not less than Two hundred thousand pesos (₱200,000.00) nor more than Five hundred pesos (₱500,000.00) | Not less than four (4) years but not more than six (6) years |
These regulations shall take effect fifteen (15) days following the publication thereof in the Official Gazette or the BIR’s official website, whichever comes first.