Selling below floor price of cigarette and vape is illegal
The BIR released new tax updates regulating the floor price of Cigarettes, Heated Tobacco, Vaporized Nicotine, and Non-Nicotine Products through the issuance of Revenue Memorandum Circular No. 49-2023 on May 5.
Pursuant to the existing laws, the BIR is mandated to prescribe the floor price of cigarettes, heated tobacco, vaporized nicotine, and non-nicotine products. The floor price or minimum retail price of the said products shall be the sum of the Production Cost or the Total Landed Cost while adding up the total Excise Tax and Value-Added Tax (VAT) of the tobacco product.
The revised minimum prices for tobacco products are as follows:
Cigarettes:
Php 114.60 per pack
Php 1,146.00 per ream
Heated Tobacco Products:
Php 120.40 per pack
Nicotine Salt Pod
Minimum price of Php 200.00 (2ml)
Php 354.97 (4ml)
Conventional Freebase Bottle
Minimum price of Php 179.20 (10ml)
Php 403.20 (30ml)
The BIR warns stubborn sellers that selling tobacco products at a lower price than the combined Excise Taxes and VAT imposed under the law is prohibited. Any violators shall be charged with the corresponding fine under the pertinent provisions of the National Internal Revenue Code of 1997, as amended (Tax Code).
Read more: https://www.bir.gov.ph/images/bir_files/PR32MAY1823.pdf
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