Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reminds sellers of vapor products, cigarettes, and heated tobacco products of the criminal consequences of selling these products below the updated floor price under Revenue Regulations No. 16-2024 (RR No. 16-2024). This prohibition covers e-marketplaces, online sellers, retail sellers, and distributors of these products.
“We are warning all E-marketplaces, Online Sellers, Retail Sellers, Suppliers and Distributors that are selling vape, cigarettes, and heated tobacco products below the floor price. This is a criminal violation penalized by imprisonment of the seller. We are monitoring both online platforms and brick-and-mortar stores. Do not sell below the floor price. Take down all posts and offerings that are below the floor price,” Commissioner Lumagui stated.
The following table is the updated floor price under RR No. 16-2024.
Under Section 2 of RR No. 16-2024, the regulation also covers e-marketplaces and online sellers. Further, under the definition of “seller”, a supplier or distributor may be considered as a seller that is covered by the regulation, depending on the circumstances.
Section 145 (C) of the National Internal Revenue Code (NIRC), as amended, provides that selling of tobacco products at a price lower than the combined excise and value-added taxes imposed under the law shall be prohibited. The seller of such products shall be punished with a fine of 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 thousand pesos (500,000.00), and imprisonment of not less than four (4) years but not more than six (6) years.
Section 263 (A) of the NIRC, as amended, also provides that any person who sells heated tobacco products and vapor products at a price lower than the combined excise and value-added taxes shall be punished with a fine of ten (10) times the amount of excise tax plus value-added tax but not less than Two hundred thousand pesos (P200,000.00), and imprisonment of not less than four (4) years but not more than six (6) years.
