The Bureau of Internal Revenue has raised the floor price for cigarettes by 39% to P114.60 a pack.
Under Revenue Memorandum circular 49-2023, BIR commissioner Romeo D. Lumagui Jr. also set a minimum price of P120.40 for 20 sticks of heated tobacco products, P200 per 2ml pod of nicotine salt or salt nicotine and P354.97 for its 4ml pod and P179.20 for a 10ml bottle of conventional freebase or classic nicotine and P403.20 for the 30ml bottle.
Lumagui said selling of tobacco products below the floor price is prohibited and those who violate this face a fine of P200,000 to P500,000 and imprisonment of four to six years.
In addition, those selling below the floor price will also face tax evasion charges as the excise tax on a pack of cigarettes is P60.
“Any seller offering below these floor prices is not paying their proper taxes. They are illegal traders. Their warehouses and stores will be raided,” Lumagui said .
The BIR conducted a nationwide raid against illicit cigarettes in January 2023.
