BIR raids illicit vape products

Bureau of Internal Revenue Commissioner Romeo D. Lumagui Jr. reported that 3 warehouses in Manila and Rizal with illicit vape products have been raided by the BIR last March 27, 2024. The said raids yield the confiscation of 63,139 units of vape products with an estimate total tax liability of P151.1 Million.

“Register your vape businesses and we will help you. Pay the proper excise taxes on your vape products and we will help you. The raids and confiscation of vape businesses and products is the result of your non-registration and non-payment of excise taxes. The BIR is here to help in the registration and proper payment of taxes of all vape businesses. We will guide you every step of the way,” Commissioner Lumagui stated.

The BIR is prioritizing the enforcement of excise taxes against excisable goods such as that of vape products.

Illicit vape product

Just last February 2024, the BIR released a statement confirming its victory against Tap Fog, a large-scale distributor of illicit vape products. The BIR won its P 1.2 Billion tax evasion case before the DOJ, which prompted the courts to issue warrants of arrest against the syndicate behind Tap Fog.

Last March 11 2024, the BIR also seized 102,900 bottles of Flava vape products in a Laguna warehouse.

The perpetrators behind the 3 warehouses in Manila and Rizal will face criminal and civil charges under the National Internal Revenue Code. They have violated Section 106 – Value-Added Tax on Sale of Goods or Properties, Section 130 – Filing of Return and Payment of Excise Tax on Domestic Products, Section 131 – Payment of Excise Taxes on Imported Articles, Section 144 – Tobacco Products, Heated Tobacco Products, and Vapor Products, Section 146 – Inspection Fee, Section 248. Civil Penalties, Section 249 – Interest, Section 254 – Attempt to Evade or Defeat Tax, and Section 263 – Unlawful Possession or Removal of Articles Subject to Excise Tax Without Payment of the Tax.

“Kailangan lang mag-register at mag-bayad ng tamang buwis para hindi masama ang inyong mga tindahan ng vape sa mga kasunod na raid ng BIR. Nandito po ang BIR para tulungan at gabayan ang mga negosyante na gustong magbenta ng vape,” Commissioner Lumagui stated.

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