BIR lowers floor price for cigarettes, tobacco

THE Bureau of Internal Revenue (BIR) said it has lowered the floor prices for cigarettes and tobacco products, citing lower production costs.

The updated floor prices were based on current manufacturing costs as well as taxes, BIR Assistant Commissioner Jethro M. Sabariaga said via Viber.

“So, if the floor price based on latest issuance is lower than previous, the manufacturers must have submitted lower costs to produce cigarettes as taxes are statutory, and are constant,” he said.

The floor price is the minimum price of products and is set by the BIR, based on production costs, excise tax, and value-added tax.

Under Revenue Regulations No. 016-2024, the floor price of a pack of cigarettes was lowered to P78.58 from P114.6 last year. A ream of cigarettes now costs P785.8 from P1,146 previously.

The floor price for heated tobacco products was also cut to P60.11 per pack from P120.4 previously.

A 2 milliliter (ml) pod of nicotine salt now has a floor price of 180.67, down from P200 a year earlier. The floor price of a 10 ml bottle was set at P679.12.

Finally, a 10 ml bottle of classic nicotine costs P181.72, up from the P179.2 set a year earlier, while the floor price of a 30 ml bottle was P263.73, down from P403.2 previously.

“The above floor prices shall only be used as reference for taxation purposes in the absence of other documents/proof as to the actual price of the product that is higher than the identified floor price,” according to BIR regulations.

However, those selling below floor price will be fined as much as P500,000 and subject to up to six years’ imprisonment.

“We are warning all e-marketplaces, online sellers, retail sellers, suppliers and distributors that are selling vapes, cigarettes, and heated tobacco products below the floor price… this is a criminal violation penalized by imprisonment of the seller,” BIR Commissioner Romeo D. Lumagui, Jr. said in a statement. — Beatriz Marie D. Cruz