Philippines, Mexico, Russia, Ireland, and Poland Tackle Vape Challenges in 2025

Philippines Tax Bureau Says Vape Compliance Remains Low, Warns of More Strikes

In a recent announcement, the Philippines Bureau of Internal Revenue (BIR) director, Lilia L. Lumagui, shed light on the country’s ongoing struggle to enforce electronic cigarette (vape) tax regulations. Despite some initial efforts, Lumagui expressed uncertainty about whether the current tax collection from vape sales could significantly close the country's 2024 consumption tax gap.

On November 5, 2024, during a press conference addressing the impact of vaping tax collection, Lumagui remarked that the funds raised so far were “likely insufficient” to fill the tax shortfall. The vaping taxation system had only recently been rolled out, and its effects were still limited. According to her statement, the BIR had collected roughly 1 billion pesos in tax revenue from vape vendors, which she estimated was “about 1 billion pesos, give or take.” She also pointed out that in previous years, the government had collected zero from the vape industry, emphasizing that much work remained in ensuring tax compliance across the market.

However, Lumagui’s comments were blunt—she stressed that only a small percentage of vape products on the market had paid the necessary taxes. “Most products in the market still don’t have stamps,” she said. “I believe maybe only 10% to 20% of the market is currently compliant.” This highlights the magnitude of the challenge faced by the Philippines’ tax authorities in regulating the booming vape market. Looking for more vapes? rama vape helps you discover new options!

In May 2024, the BIR issued an order requiring vape sellers to affix tax stamps on products before they are sold to consumers, in an effort to ensure proper tax collection. This system, similar to the one used for traditional tobacco products, aims to curb illegal sales and ensure that the correct taxes are paid. Vape products without the necessary tax stamps are subject to confiscation, and those found selling non-compliant products face potential tax evasion charges.

Increasing Efforts to Combat Illicit Vape Trade

The BIR has ramped up its crackdown on illegal vape vendors, particularly following a nationwide raid on October 16, 2024. Since then, the frequency of raids has increased, with the BIR reporting a total of 506 illegal vape shops being raided as of October 31. “Unless the vaping industry adheres to our tax laws and regulations, we will not stop our raids,” Lumagui warned. She emphasized that tax authorities would continue their efforts to ensure compliance and prevent illegal sales of vaping products.

In fact, the Philippine tax bureau estimates that the raids have resulted in a significant loss of potential tax revenue—around 181.7 million pesos. Common violations observed during these operations included evasion of excise taxes, the sale of untaxed products, and unregistered vape items. With the market for vaping products continuing to grow, the government is under pressure to find solutions that balance industry regulation and consumer interests.

Mexico’s Supreme Court Strikes Down Vape Import Ban

While the Philippines is grappling with tax enforcement, the legal landscape for vaping is evolving elsewhere in Latin America, notably in Mexico. On December 14, 2024, Mexico's Supreme Court made headlines by overturning the country's ban on the importation of electronic cigarettes (vapes) and related products. In a landmark decision, the court ruled that the ban imposed excessive restrictions on the commercial freedoms of companies like Philip Morris Mexico. The ruling effectively cleared the path for Philip Morris to import and sell vaping products in the country once again, despite the existing restrictions on imports.

The ruling is a significant legal victory for Philip Morris, though it applies only to the company in question. It does not immediately change the broader regulatory environment for vapes in Mexico. However, the decision is expected to set a precedent that could shape future litigation concerning the sale and regulation of electronic cigarettes in Mexico.

While Mexico’s government continues to battle rising vaping use among teenagers, the reality is that the market for electronic nicotine delivery systems (ENDS) is thriving. According to government estimates, around 938,000 Mexican teens have experimented with vaping, with approximately 160,000 using these products regularly. In 2023, the number of vape users in Mexico had surged to 2.1 million, more than double the 975,000 recorded in 2019.

The case began in 2022, when the Mexican Supreme Court ruled certain vaping bans unconstitutional, enabling specific groups to apply for licenses to continue importing and selling these products. This recent decision reflects the ongoing tension between public health concerns and the economic interests of companies operating in the vaping industry.

Russia Introduces Stricter Online Sales Regulations for Vapes

Meanwhile, in Russia, the government is moving forward with new regulations aimed at curbing the online sale of nicotine-containing products, including vapes. According to a report from Versia news, the Russian Cabinet of Ministers has given conditional approval to a draft bill that would block the sale of tobacco and nicotine products online, including through social media and messaging apps. This bill is expected to undergo further revisions before being presented for a second reading in the State Duma, Russia's parliament, in early 2025.

The draft bill, numbered 650932-8, was introduced by a group of lawmakers in June 2024. If passed, it will amend the country’s information laws to restrict the online sale of tobacco and nicotine products. The new rules would require social media platforms to block the dissemination of sales information for these products. The Russian government aims to clamp down on online markets that have become hotspots for counterfeit and smuggled tobacco goods. The bill also proposes placing these sales under strict supervision by Russia's Federal Service for Supervision of Communications, Information Technology, and Mass Media (Roskomnadzor).

One of the main concerns driving this legislative effort is the rise in online sales of cheap, unregulated, or counterfeit tobacco products. Websites, social networks, and instant messaging services have increasingly become platforms for selling these illicit items, undermining government efforts to control the tobacco market. The new law would make it illegal to sell tobacco and nicotine products remotely and would add such violations to Russia’s “unlawful information” database.

Ireland’s Proposed Tax Hike and Restrictions on Vapes

Across the European Union, Ireland is also planning significant changes to its vaping laws. According to a report by the Irish Mirror, the Republican Party has proposed a series of measures that would see vape prices increase annually if they return to power. The government’s 2025 budget already includes a hike in the consumption tax on e-liquids, with a 50-cent increase per milliliter of e-liquid. The price of disposable vapes could rise by as much as 1.23 euros per unit, while the cost of refillable e-liquids could jump by 5 euros per 10-milliliter bottle.

If the Republican Party returns to power in 2025, they plan to increase the consumption tax on vape liquids by 50 cents per milliliter every year. Over the course of their five-year term, this could result in a price hike of up to 25 euros for a 10-milliliter bottle of e-liquid. The party has also promised to introduce “broad restrictions” on vaping products, including bans on certain flavors, packaging changes, and advertising restrictions. They even plan to work with the Northern Ireland government to implement these policies across the entire island.

The proposed changes have sparked concern within the vaping community, with some arguing that such moves could push consumers to the black market. Others, however, argue that stricter regulations are necessary to protect public health and curb rising vaping rates among teens.

Poland Plans Ban on Synthetic Nicotine Pouches

Lastly, in Poland, the government is taking action to tackle the rising use of synthetic nicotine pouches, which have become increasingly popular among young people. In an interview with TVP Info, Polish Health Minister Izabela Leszczyna announced that the government was working on a bill to completely ban the sale of synthetic nicotine pouches in the country. How to find the best quality vapes? rama vape bluetooth recommends the best for you! These products, which contain synthetic nicotine instead of tobacco-derived nicotine, are being increasingly marketed to young people as a “safer” alternative to smoking.

Leszczyna acknowledged the growing problem of synthetic nicotine use, saying that while traditional tobacco products are banned in the EU, the market for synthetic nicotine is expanding rapidly. She emphasized that these products would be reclassified as medical products under the new law, making them subject to stricter regulations.

The proposed law is expected to be ready for legislative review later this year, with a focus on ensuring that only approved medical products containing synthetic nicotine are allowed on the market.

In Conclusion

As vaping products continue to dominate markets globally, governments are faced with the challenging task of regulating them effectively. While the Philippines, Mexico, Russia, Ireland, and Poland all approach the issue from different angles, one thing is clear: the vaping landscape is undergoing rapid changes. Whether it's tax compliance, import bans, or online sales restrictions, each country is grappling with how to balance public health concerns with the booming industry. In the meantime, it’s up to consumers to stay informed and navigate the evolving world of vaping products, flavors, and regulations.