Vaping remains legal in the Philippines, under a relatively mature regulatory framework — the Vaporized Nicotine and Non-Nicotine Products Regulation Act (RA 11900), effective since 2022, explicitly classifies vapes as tobacco-related products, not medicine and not an ordinary consumer good. But a new draft proposed in early 2026 deserves its own explanation, because its scope is narrower than it might first appear, and easy to misread as a broader crackdown.
The 2026 proposal: targeting open systems specifically
In January 2026, the Office for the Special Mandate on Vaporized Nicotine and Non-Nicotine Products (OSMV), under the Department of Trade and Industry (DTI), proposed a draft administrative order that would ban the import, manufacture, and distribution of open-system pods and e-liquids — refillable devices and bulk e-liquid that users can manually top up themselves. Public comment closed February 4, 2026, with adoption originally targeted for that same month.
The direct trigger for this proposal was the appearance of illicit vape products containing synthetic cannabinoids — largely circulating through open-system devices, since bulk e-liquid is harder to trace back to its source. Regulators concluded that restricting open-system distribution channels was the most direct lever to control this category of high-risk product.
Closed-system, prefilled disposable vapes are not covered by this draft — a distinction that aligns with the pattern in mainland China's domestic-market rules (covered elsewhere on this site), which similarly permit closed systems while restricting open ones. The underlying motivations differ somewhat (the Philippines' move is more about responding to the synthetic cannabinoid incident, China's is framed around youth access and channel traceability), but both arrive at the same structural conclusion: single out "open/refillable" as the form factor to restrict.
Excise taxes keep climbing, with 2026's new rate already in effect
Beyond this new draft, the Philippines has been steadily raising excise duty on vapes:
- 2026's new rate: nicotine salt/freebase e-liquid taxed at ₱60.20 per ml
- Traditional cigarette tax rose in parallel to ₱69.46 per pack
- This has translated into real revenue — sin-tax collections from tobacco products reached ₱106 billion through the first three quarters of 2025, a clear jump from ₱84 billion over the same period in 2024
Tax enforcement is also intensifying — in 2025, the Bureau of Internal Revenue (BIR) filed ₱8.7 billion in tax evasion charges against importers/distributors suspected of evasion, alongside 75 criminal complaints for illicit trade.
Market scale: a market that keeps growing
The Philippines' vape market is projected to reach $345.6 million by 2030, growing at roughly 18.7% CAGR from 2024-2030. Combined with the fact that closed-system products fall outside the new draft, this suggests the Philippines remains a market worth investing in for product lines centered on closed-system disposables — the main adjustment needed is factoring the rising excise duty into landed cost calculations.
Practical guidance for sourcing and product lines
- If your product line is closed-system disposables, the 2026 draft largely doesn't affect you — continue evaluating the Philippines market on its current trajectory
- If your product line includes open-system/refillable devices or bulk e-liquid, watch this draft's final passage and effective date closely, and plan ahead for whether that portion of your line needs to pause Philippines-bound shipments
- The 2026 excise increase is already in effect — quotes and landed-cost calculations need the current rate, not older figures
- Philippine regulators are visibly ramping up enforcement against tax evasion and illicit trade — when selecting supply chain and distribution partners, a clean compliance track record is worth weighing more heavily than price alone
(General information only, not legal advice — consult a lawyer familiar with Philippine compliance before making business decisions.)