According to bworldonline, the Philippine Department of Internal Revenue (BIR) said it will require importers of raw materials for e-cigarette products to apply for a special license in order to release their shipments.
The agency said it was doing so to regulate the industry of e-cigarettes, a new market player.
BIR Commissioner Romeo Lumagui Jr. said, “For e-cigarette products, we will require them to apply for authorization to import raw materials.” At present, there are many e-cigarette products, and we are considering management measures. The production of e-cigarette products is mostly a small-scale industry, so we are thinking about how to manage it.”
In the latest tax memorandum, the BIR announced that importers or producers of raw materials and equipment used to process heated tobacco products and atomized products are now required to apply for permission to import goods.
“Raw materials used to process heated tobacco products and atomized products will include, but are not limited to, propylene glycol, vegetable glycerin, organic sweeteners, artificial flavorings, and nicotine,” the memo states.
The equipment used to produce these products will include, but not be limited to, mechanical or electric heating elements/nebulizers, circuits, devices, reservoirs, suction cups, regulators and suction nozzles.
In addition to applying for permission to release imported goods, importers and producers must also apply for a business license.
Lumagui said the BIR was working to address the lack of consumption tax revenue due to illicit tobacco. “Our goal is to minimize this 20 percent difference. Within a year, we could cut it by more than half… At the end of the day, I hope to be able to completely resolve the gap.”