Juul Labs, a leading U.S. e-cigarette manufacturer, has entered the Philippine market in partnership with Better for You Corp., a subsidiary of JG Peak Holdings Ltd., one of the largest conglomerates in the Philippines, according to Business World.
Juul claims that his products can be used as a substitute for traditional flammable cigarettes, saying that their use has contributed to the decline in smoking rates in the United States, while the Philippines currently has 16 million smokers
Congress recently approved higher taxes on HNB and vape products, pending the signing of Philippine President Dutter.
The measure stipulates that, from January 2020, for HNB products such as electronic cigarettes, the tax rate will be levied at 10 pesos (about $0.19) per set, and from 2021, the tax rate will be increased by 5% annually.
Similarly, in 2020, 10 pesos were levied on atomizers, pods and e-liquids per 10 milliliters, but those containing more than 50 milliliters would be levied 50 pesos, 10 pesos for every 10 milliliters increase. From 2021, the tax rate will increase by 5% annually.
The above taxes are levied on the basis of the existing 12% VAT.
In May 2019, Juul Labs entered the Korean market and the Philippine market in June. It is expected to enter Indonesia in the coming weeks.
