FPI bats for enactment of vape bill, cites ‘sweet spot’ for revenue, health objectives

Federation of Philippine Industries Chairman Jesus Arranza

 MANILA, Philippines – A major business group has asked President Rodrigo Duterte to sign the vape bill into law, saying this will support the government’s revenue and health objectives.

 “The enactment of the vape bill will provide a sweet spot for achieving the government’s revenue and health objectives,” the Federation of Philippine Industries (FPI) said in a letter to the President.

In the letter sent through Executive Secretary Salvador Medialdea on January 31, 2022, the FPI said the vape bill will save the lives of Filipino smokers with the help of less harmful alternatives, while protecting local jobs and investments.  

The bill was earlier ratified by the Senate and the House of Representatives.

FPI is the largest umbrella group of 168 organizations and companies from various Philippine industries. 

Dr. Jesus Lim Arranza, chairman of FPI, said the group endeavors to serve as the voice of Philippine industries and become an effective partner of the government in promoting and developing globally competitive Philippine industries.

“As we are a staunch ally for the advancement of domestic industries, especially small and medium enterprises, FPI would like to take this opportunity to humbly urge His Excellency to enact into law the vape bill,” the FPI said in the letter.

The bill

The vape bill is a consolidation of Senate Bill No. 2239 or the “Vaporized Nicotine and Non-Nicotine Products Regulation Act” and House Bill No. 9007 or the “Non-Combustible Nicotine Delivery Systems Regulation Act”. 

It aims to establish clear and effective regulations on less harmful alternatives to combusted cigarettes.

Once enacted into law, it will regulate the importation, manufacture, sale, packaging, distribution, use and consumption of these products such as e-cigarettes and heated tobacco products (HTPs).

The bill seeks to provide 16 million Filipinos smokers with viable alternatives such as vapes and HTPs that are considered less harmful compared to cigarettes.  

Results of the 2015 Global Adult Tobacco Survey show that while 76.7 percent of smokers planned or thought about quitting, only 4 percent were able to do so.   The vape bill hopes to encourage more smokers to quit.

The FPI said it strongly supports the vape bill’s overwhelming approval in the House of Representatives and the Senate and the fair regulations of alternatives to cigarettes.

“Reduced risks”

“Regulations of these e-cigarettes and heated tobacco products which have indications of providing reduced risks compared to cigarettes should rightly be at parity, or at least not more restrictive than cigarettes—the leading cause of preventable death in the world,” the FPI said.

Public Health England, a leading health agency in Europe, found vapes to be at least 95-percent less harmful than traditional cigarettes.  

The United Kingdom and other countries that adopted progressive policies around vaping have seen their smoking rates decline twice as fast as other nations, according to scientific studies.

In the Philippines, FPI said the availability of these less harmful alternatives would be a gain for public health, particularly for 16 million Filipino smokers. 

Vape bill provisions

The group said the vape bill will also regulate a new industry that can raise more taxes for the government.

It said among the vape bill’s key features is the prohibition of sale to and marketing initiatives targeting or appealing to minors, and the imposition of hefty fines and imprisonment on violators.

The vape bill bans the sale, advertising and promotion of e-cigarettes and HTPs within 100 meters from any school, playground or other facilities frequented by minors.

“Our time-honored advocacy extends, not only to the welfare of Philippine industries, but also to their stakeholders including adult smokers and minors,” the FPI said.

It said there are ample provisions in the vape bill that aim to combat illicit trade and promote a level playing field between and among foreign and domestic manufacturers, importers and exporters of vaporized nicotine and non-nicotine products.

The FPI said that under the bill, only the Department of Trade and Industry-registered and Bureau of Internal Revenue-compliant products will be allowed to be sold, advertised or distributed through lawful means.

“Illicit trade of these products as well as unintended use are minimized, if not totally eradicated,” the FPI said.

The vape bill empowers the DTI to order a recall or seizure of non-compliant products sold both online and in-store.  The BIR is authorized to prescribe a floor price for these products.

It also regulates online sales, which is considered timely given the widespread shift to e-commerce from traditional trade channels, according to FPI.

“These new reforms would make it difficult for unscrupulous, unregistered, and non-taxpaying traders to peddle their smuggled goods to innocent consumers. All these also guarantee correct, adequate and stable collection of taxes for the government, while at the same time safeguarding local employment and investment of legitimate industries,” the group said.

The FPI said the enactment of the vape bill will support “economic stability and fiscal sustainability through policies that support local businesses and workers”.

“It is our desire to work hand in hand with the Office of the President to create a globally competitive Philippines grounded on effective legislation,” it said.

The FPI said it supports legislation enhancing economic development and informing members and the public about economic issues and policies which affect business directions.

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