The Bureau of Internal Revenue (BIR) announced that it will begin confiscating vape products lacking tax stamps starting in June and will enforce legal consequences on individuals caught with these items.
In a statement, BIR Commissioner Romeo D. Lumagui Jr. said that vape manufacturers and importers must pay excise taxes and adhere to internal revenue stamp requirements by June 1, 2024.
READ: BIR mandates tax stamps on vape products starting June
"We have warned the illicit vape industry to pay your proper taxes. Comply with the internal revenue stamps by June 1, you can order as early as May 8. The BIR will monitor the internal revenue stamps for the vape industry,” Lumagui said on Tuesday, May 7.
“If your products do not have any internal revenue stamps by June 1, we will raid your stores and seize the products,” he added.
Lumagui warned that individuals in possession of unauthorized vape products will be held accountable.
“Aside from administrative penalties that can be multiplied ten times, you will also be criminally liable for tax evasion," the BIR chief said.
Lumagui pointed out that all imported and locally manufactured vape products in the market must have internal revenue stamps by June, as mandated in Revenue Memorandum Circular No. 59-2024.
The 4th generation internal revenue stamps for these products will be open for ordering starting May 8, 2024.
According to Lumagui, this requirement is a measure by the BIR to ensure that the vape industry pays taxes correctly.
The absence of internal revenue stamps on vape products indicates non-payment of excise taxes, rendering them liable for seizure by the BIR and exposing the business owners to criminal charges for tax evasion.
The BIR has been tackling the issue of illicit vape trade since 2022, with Lumagui leading a raid and the filing of criminal cases against illicit vape traders in Manila, who had a tax liability of P1.2 billion in November and December 2022.
In July 2023, a nationwide raid on excisable products was conducted by the BIR, resulting in warrants of arrest being issued against illicit vape traders in February 2024 as a consequence of the filed criminal cases.
Moreover, in March 2024, the BIR raided a warehouse in Laguna, followed by raids on warehouses in Manila and Rizal housing illicit vape products in April 2024.
"The BIR is encouraging business owners to pay excise taxes for their vape products. The BIR will release internal revenue stamps that must be seen on the vapes you are selling,” Lumagui said.
“The BIR will ensure that all businesses are paying the correct taxes. There is no place in ‘Bagong Pilipinas’ for those who sell vapes without paying the correct taxes,” he concluded.