BIR tightens clamp on illicit vape trade

The government is ramping up its offensive against the illicit vape trade, with the Bureau of Internal Revenue (BIR) affirming its resolve to file criminal charges against unregistered businesses and individuals involved in the non-compliant distribution and sale of vape products.

BIR Commissioner Romeo Lumagui Jr. underscored the agency’s unrelenting stance during a recent television interview, as detailed in a news release on Friday.

“There will be no letup in our fight against illicit trade. Just recently, we filed criminal cases against importers of vape products. This shows that the campaign against the illicit trade on vape products is continuous, and we will not stop until we address this issue,” Lumagui said in Filipino.

The commissioner was referring to the April 29 tax evasion complaints filed before the Department of Justice against several vape importers accused of evading P8.68 billion in taxes. These cases involve operators behind the brands Flava, Denkat, and Flare.

The BIR’s crackdown does not stop with importers and distributors. Lumagui warned that retailers, social media endorsers, and influencers promoting untaxed vape products could also be charged with tax evasion under the National Internal Revenue Code.

“All those involved in the trade of untaxed vape products, including sellers, endorsers, and influencers, could face tax evasion charges under the tax code,” he said.

He advised those engaged in vape selling or promotion to consult the BIR’s website for the official list of registered brands to avoid legal repercussions.

The BIR has scaled up enforcement actions nationwide, complementing efforts by the Bureau of Customs, which include the seizure and destruction of P3.26 billion worth of smuggled vape merchandise.

Since introducing the vape stamp system in June 2024 and strengthening its coordination with the Department of Trade and Industry, the BIR has seen a sharp rise in excise tax collections from vape products.

Excise collections surged from P223.75 million on 11.2 million milliliters in 2023 to P942 million on 130 million milliliters within just six months of the program’s rollout.