Juul Labs has partnered with Better for You Corp., a subsidiary of JG Summit Holdings, to enter the Philippine market, reports The Business World.
The company presents its product as an alternative to traditional combustible cigarettes, saying that Juul use has contributed to a decline in smoking in the U.S. The Philippines is home to 16 million smokers, according to the company.
However, the Philippine Department of Health (DoH) insists that there is “no specific evidence to confirm the product’s safety and efficacy” and that e-cigarettes are not “proven nicotine replacement therapy.”
The DoH is drafting an administrative order regulating sales of electronic nicotine delivery systems and non-nicotine delivery systems.
Congress recently approved a higher levy on heated tobacco and vapor products. The measure is awaiting President Rodrigo Duterte’s signature.
Heated tobacco products such as e-cigarettes will be taxed PHP10 ($0.19) per pack beginning January 2020, which will be followed by yearly hikes of 5 percent starting 2021.
Also in 2020, vapor products, pods, cartridges and refills will be taxed PHP10 per 10 ml but those with volumes higher than 50 ml will be taxed PHP50 on top of the PHP10 per additional 10 ml. Excise for these vapor products will also increase annually by 5 percent starting 2021.
The excise taxes are on top of the existing 12 percent value-added tax.
Juul Labs’ entry into the Philippines follows its launch in South Korea last month. The company is set to introduce its products in Indonesia in the next few weeks.