Focuses on Vaping Sector in Crackdown on Unlawful Commerce
Gearing Up the Battle Against Illegal Vape Trade
The Philippine government's relentless war on illicit trade is gaining momentum, with tax authorities promising to take down unregistered and rule-breaking players in the blooming vape market.
This was confirmed by Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. during a TV interview on Thursday, May 8, as shared in a news release on Friday, May 9.
"We won't falter in our battle against illegal trade," Lumagui stated in Filipino. "Recently, we've filed criminal cases against importers of vape products. This signifies that our campaign against the illegal vape trade is unyielding and won't cease until we tackle this matter."
The BIR commissioner was referring to the tax evasion suits the BIR filed on April 29 before the Department of Justice against large-scale illicit vape businesses for failing to pay ₱8.68 billion in taxes. These charges involve illicit vape traders selling the brands Flava, Denkat, and Flare.
Lumagui emphasized that the campaign encompasses more than just distributors and importers.
"Anyone involved in the trade of untaxed vape products, such as sellers, endorsers, and influencers, could face tax evasion charges as stated in the tax code," he said.
To stay out of trouble, Lumagui advised sellers and endorsers to check the list of registered vape brands on the BIR website.
The BIR has amped up enforcement measures nationwide, expanding on previous actions like the seizure of smuggled vape products and the destruction of ₱3.26 billion worth of illicit contraband in partnership with the Bureau of Customs.
Since the BIR introduced the vape stamp system in June 2024 and stepped up cooperation with the Department of Trade and Industry, excise tax collections from vape products have experienced a substantial increase.
In 2023, only 11.2 million milliliters were taxed, generating ₱223.75 million in excise taxes. However, within six months of implementing the stamping system, the collection soared to 130 million milliliters and ₱942 million. [PNA]
Insights
- The BIR and Bureau of Customs (BOC) are leading the government's crackdown on the unregistered and non-compliant vape market, targeting manufacturers, distributors, online sellers, social media endorsers, and influencers.
- Major operations are being conducted by the BOC to destroy seized illicit vape products and ensure regulatory compliance, including efforts to combat smuggling and public health protection.
- The implementation of the vape stamp system in June 2024 has led to a significant surge in excise tax collections.
- The Philippine government's ongoing war against illicit trade, as demonstrated by the efforts of the Bureau of Internal Revenue (BIR), is focusing on unregistered and rule-breaking players in the vape industry, including importers, sellers, endorsers, and influencers.
- In a bid to combat tax evasion, the BIR has filed criminal cases against large-scale illicit vape businesses that failed to pay billions in taxes, targeting brands such as Flava, Denkat, and Flare.
- BIR Commissioner Romeo Lumagui Jr. urged sellers and endorsers to check the list of registered vape brands on the BIR website to avoid facing potential tax evasion charges.
- The implementation of the vape stamp system in June 2024 drastically increased excise tax collections from the vape industry, with taxed vape products rising from 11.2 million milliliters in 2023 to 130 million milliliters within six months.
- The BIR, in collaboration with the Bureau of Customs, is taking aggressive measures such as seizing smuggled vape products and destroying illicit contraband, worth over ₱3.26 billion, to ensure regulatory compliance and public health protection.