Manila, July 20, 2025 — A new tax regulation issued by the Bureau of Internal Revenue (BIR) of the Philippines on July 18 indicates that it has raised the minimum retail prices for cigarettes, heated tobacco products, and e-cigarette products to meet the growing demand for tax collection.
According to the regulation, the minimum price per pack of cigarettes has increased from 78.58 pesos (about 1.42 USD) to 85.57 pesos (about 1.55 USD). This adjustment also reflects the rising production costs, with the production cost per pack of cigarettes increasing from 7.16 pesos to 10.25 pesos.
Additionally, the minimum price per ream (approximately 500 sheets) has been raised to 855.68 pesos (about 15.56 USD), an increase of about 9% compared to the previous 785.80 pesos (about 14.33 USD). Meanwhile, the production cost has also risen from 71.60 pesos to 102.50 pesos.
For heated tobacco products (20 sticks per pack), the minimum price has increased from 60.11 pesos (about 1.09 USD) to 61.47 pesos (about 1.12 USD), while the production cost has slightly decreased from 19.54 pesos to 19.04 pesos.
Regarding e-cigarette products, the minimum price for 2ml nicotine pods has significantly increased, from 180.67 pesos (about 3.28 USD) to 353.18 pesos (about 6.42 USD), while the production cost has jumped from 52.11 pesos to 200.68 pesos. For disposable pods, pre-filled pods, and disposable e-cigarettes, the minimum prices have also been set at 183.31 pesos (about 3.33 USD), 174.89 pesos (about 3.18 USD), and 98.18 pesos (about 1.78 USD), respectively, which are all first-time explicit settings.
In a statement, the BIR noted that this adjustment will help ensure sustainable growth in tax revenue. Data shows that in the first half of 2024, the BIR collected 58.97 billion pesos (about 1.07 billion USD) in taxes on tobacco products, representing a 34.16% increase compared to the previous year. Meanwhile, tax revenue from e-cigarette products surged by 738.09%, reaching 15 billion pesos (about 273 million USD).
Background Analysis:
As the Philippine government continues to strengthen its focus on health and tax policies, this price adjustment by the BIR is not only aimed at increasing tax revenue but may also seek to reduce the consumption of tobacco and e-cigarettes by raising prices. This move also aligns with the global trend of strengthening e-cigarette regulations.
The BIR stated that the new regulation will take effect within 15 days after its publication in the “Official Gazette” or on its official website.
