PRESCRIBING THE UPDATED FLOOR PRICE OF CIGARETTE, HEATED TOBACCO, AND VAPOR PRODUCTS PURSUANT TO SECTIONS 144 (B) AND (C) AND 145 (C) OF THE NIRC OF 1997, AS AMENDED

Introduction

REVENUE REGULATIONS NO. 16-2024

This issuance updates floor prices of Cigarette, Heated Tobacco, and Vapor Products prescribed in Revenue Memorandum Circular (RMC) No. 49-2023, which revised the floor prices set forth in Section 6 of Revenue Regulations (RR) No. 14-2022 and RMC No. 79-2022.

Updated Floor Price

1. Cigarettes

Packaging	Content per Packaging	Production Cost/ Total Landed Cost	Excise Tax	Value Added Tax (VAT) (12%)	Total tax	Floor price
Pack	20 sticks	7.16	63.00	8.42	71.42	78.58
Ream	10 packs	71.60	630.00	84.20	714.20	785.80

1.  Heated Tobacco Products

Packaging	Content per Packaging	Production Cost/ Total Landed Cost	Excise Tax	VAT (12%)	Total tax	Floor price
Pack	20 sticks	19.54	34.13	6.44	40.57	60.11

1. Vapor Products

1. Nicotine Salt or Salt Nicotine

Packaging	Pack/Fill	Content per Packaging	Production Cost/ Total Landed Cost	Excise Tax	VAT (12%)	Total tax	Floor price
Pod	1	2 ml	52.11	109.20	19.36	128.56	180.67
Bottle	1	10 ml	60.36	546.00	72.76	618.76	679.12

1. Conventional ‘Freebase’ or ‘Classic’ Nicotine

Packaging	Pack/Fill	Content per Packaging	Production Cost/ Total Landed Cost	Excise Tax	VAT (12%)	Total tax	Floor price
Pod	1	10 ml	99.25	63.00	19.47	82.47	181.72
Bottle	1	30 ml	46.47	189.00	28.26	217.26	263.73

 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:

Tax Code	Violator	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
Under Section 263-A of the same Code, as amended	Any person who sells heated tobacco products and vapor products at a price lower than the combined excise and value-added taxes

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.