The Philippine government is stepping up its campaign against illicit vape trade, with the Bureau of Internal Revenue (BIR) set to pursue criminal charges against unregistered and non-compliant businesses in the growing sector.
BIR Commissioner Romeo Lumagui Jr. emphasized the agency’s firm stance during a television interview on Thursday. “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 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 statement refers to tax evasion charges filed on April 29 against vape importers behind brands Flava, Denkat, and Flare for allegedly evading ₱8.68 billion in taxes.
Lumagui warned that the crackdown covers not only manufacturers and distributors but also online sellers, social media endorsers, and influencers promoting untaxed vape products. “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.
To avoid penalties, he advised the public to verify brand registrations through the BIR website.
The BIR has ramped up enforcement nationwide, working closely with the Bureau of Customs in seizing and destroying ₱3.26 billion worth of smuggled vape items.
Following the implementation of the vape stamp system in June 2024 and improved coordination with the Department of Trade and Industry, excise tax collection has seen a significant increase. From just ₱223.75 million in 2023, collections surged to ₱942 million within six months, with volume rising from 11.2 million to 130 million milliliters.
