Vape brand Flava ripe for tax evasion case, Barbers tells BIR
At A Glance
- Surigao del Norte 2nd district Rep. Robert Ace Barbers has called on the Bureau of Internal Revenue (BIR) to file a tax evasion case against vape brand Flava Corporation, which allegedly has P728 million in unpaid excise taxes.
Surigao del Norte 2nd district Rep. Robert Ace Barbers (Screenshot from Zoom)
A lawmaker in the House of Representatives has called on the Bureau of Internal Revenue (BIR) to file a tax evasion case against vape brand Flava Corporation, which allegedly has P728 million in unpaid excise taxes.
In a statement on Wednesday, Feb. 14, Surigao del Norte 2nd district Rep. Robert Ace Barbers said the Committee on Ways and Means found Flava to have undervalued last year its imported excisable shipments worth P1.4 billion.
"It's high time that the BIR hails Flava to court,” said Barbers. "With strong evidence against Flava, the BIR can generate for public coffers up to P7.2 billion.”
Under the country’s Tax Code, taxpayers who owe excise taxes can be punished with a fine of not less than 10 times the amount of outstanding dues.
Barbers, the House Committee on Dangerous Drugs chairman, notes that the potential P7.2-billion penalty is more than double the P3.4-billion budget of the Philippine Drug Enforcement Agency (PDEA) for 2024. He noted that this can cover at least two years of the government’s campaign against illegal drugs.
“We can duplicate our anti-illegal drugs campaign efforts if the government will collect what is due from tax evaders," he said.
Additionally, the lawmaker stressed that Republic Act (RA) No. 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, clearly prohibits the sale and marketing of vapes to minors--something Flava seems to neglect with its “aggressive” social media advertising.
"As one of the principal authors of the landmark law intended to protect our youth, especially minors, from potential abuse of vaping devices, I am adamant on ensuring that this is followed by all industry players," he said.
The House Ways and Means committee report has found that several e-commerce and other online platforms have been selling vapor products and electronic cigarettes “without the necessary precautions necessary to verify the age of the purchaser as well as to apprise the public of the health implications of vape products and electronic cigarettes as required by law".
With these violations, Barbers has also called on the Department of Trade and Industry (DTI)--as the vaping industry regulator--to heed the committee report's recommendations.
That is, to revoke Flava Corporation's business license and permit, as well as remove all of its vapes from the market.