Even though the illegal trade and high taxation continue to be major challenges for the tobacco industry in this country, selling tobacco in the Philippines is projected to continue growing in the following years.
The unitary taxation for cigarettes which was introduced in 2017 is meant to decline the sales of these items, however, consumers are projected to adapt to the new prices within the first year after adopting this taxes.
As follows, our company formation agents in the Philippines outline a few important aspects related to selling tobacco in this country.
The Tobacco Regulation Act of 2003
Selling tobacco in the Philippines has to comply with the Tobacco Regulation Act of 2003.
According to this act, every tobacco retailer has to ensure that all the tobacco-related self-service displays or facilities, advertising, labeling and so on which are placed in the retailer’s establishment and which do not abide by the requirements of the act are removed. These must be bought in compliance with its regulations.
Our company registration consultants in the Philippines can provide more information on these regulations. We can also assist you in starting a tobacco business in the Philippines.
Also, the act provides that it is illegal for:
• A retailer to sell or distribute tobacco products in the Philippines to any child under 18 years of age;
• Any individual to buy cigarettes or tobacco items from a minor;
• A minor to sell or buy cigarettes or any tobacco items;
• A child under 18 years of age to smoke cigarettes or any other tobacco items.
Taxes on cigarettes in the Philippines
The Philippines introduced an excise tax and a value added tax (VAT) on tobacco items.
The excise tax on tobacco items in the Philippines has several tiers, with some brands being subject to a taxation which is smaller than one-tenth of the tax per pack which is levied on other brands.
Our Philippines company formation advisors can offer further information related to the taxes on tobacco in this jurisdiction.
If you have more questions about the tobacco industry in the Philippines, or for help to open a company in the Philippines, please do not hesitate to get in touch with us.