BIR flares up at vape industry for persistent tax defiance


The Bureau of Internal Revenue (BIR) has vowed to take a more aggressive stance against the illicit vape industry, which has repeatedly flouted tax regulations. 

In a statement, BIR Commissioner Romeo D. Lumagui Jr. expressed frustration over the continued proliferation of illicit vapes despite repeated warnings and efforts to enforce compliance.

"The illicit vape industry has been repeatedly warned to comply with BIR regulations. Despite multiple chances, they refuse to follow the law,” Lumagui said.

The BIR has deployed teams to investigate and apprehend individuals and businesses involved in the illegal vape trade. 

“Expect regular raids. Expect criminal cases,” Lumagui warned.

On Oct. 16, the BIR conducted another nationwide raid targeting retailers and resellers caught selling illicit or untaxed products.

Lumagui led the operation, which aimed to dismantle the network of smugglers and distributors fueling the illegal vape trade.

“Resellers of illicit vape will be raided. They are the enablers of vape smugglers. If there are no resellers, there will be no smugglers. The smugglers will be forced to comply with BIR regulations,” he said.

Revenue Regions and District Offices were tasked with monitoring and raiding establishments suspected of selling illicit vapes. 

The BIR also encouraged the public to report any businesses involved in the illegal trade.

Common violations by illicit vape retailers include failure to affix BIR tax stamps, failure to register as manufacturers or importers, failure to register vape products, and failure to adhere to the minimum floor price.

The BIR has been relentless in its pursuit of illicit vape operators. 

In recent months, the agency has conducted raids on various locations, including the Taytay Tiangge Market, a Quezon City building with a vape vending machine, and warehouses in Rizal, Manila, and Laguna.