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Manila Bulletin devider Business devider BIR's crackdown on illicit vapes nets over P400 million in tax liabilities

BIR's crackdown on illicit vapes nets over P400 million in tax liabilities

Published Dec 3, 2024 06:21 am

The Bureau of Internal Revenue (BIR) said that it has seized over half a million units of illicit vapes and uncovered more than P400 million in tax liabilities through a nationwide crackdown on illegal vape retailers.

In a statement, BIR Commissioner Romeo D. Lumagui Jr. said the bureau launched the operation on Oct. 16 this year in response to the growing prevalence of untaxed and unregulated vape products in the market.

“Eight hundred seventeen illicit vape retailers/resellers raided, 563,284 units/pods of illicit vape seized, P415 million in total tax liability. The BIR will continue its war against illicit vape. Report all stores with illicit vape to [email protected]," Lumagui stated.

The BIR's operation has targeted 817 retailers across the country, seizing a total of 563,284 units/pods of illicit vapes. The estimated total tax liability from these seizures, including penalties, amounts to P415,359,656.72.

Lumagui himself participated in the raids, uncovering a store in Quezon City that used a "secret menu" to sell illicit vape products from a backroom bodega.

The BIR's crackdown has revealed common violations among illicit vape retailers, including the failure to affix internal revenue stamps, non-payment of excise taxes, and non-registration of vape brands.

These violations not only deprive the government of significant revenue but also pose health risks to consumers due to the lack of regulation and quality control over these products.

In response to the BIR's intensified efforts, illicit vape retailers are reportedly shifting their operations online. The BIR has received complaints about illicit vapes and cigarettes being sold through various online platforms and e-marketplaces.

"All online platforms and e-marketplaces should not offer for sale all illicit vape. Take them down. Block the online sellers from doing business in your platforms,” Lumagui said.

“Check for other keywords or phrases that these criminals use to hide or mask what they are really selling in your platforms. Report all online stores with illicit vape to [email protected]," he added.

Related Tags

Illicit Vapes Bureau of Internal Revenue (BIR)
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