Authorities busted an online-enabled illicit vape operation in Bulacan, seizing over 18,000 vape products and counterfeit tax stamps due to a coordinated effort between the Bureau of Internal Revenue (BIR) and the National Bureau of Investigation (NBI).

In a statement, BIR Commissioner Romeo Lumagui Jr. said that the enforcement operation, conducted on May 30, was the result of extensive surveillance of online sales activities on Facebook. 

Lumagui said the surveillance provided the necessary basis for the issuance of a Mission Order and a subsequent search warrant.

“We want to send a loud and clear message to those selling illicit vape products: the BIR and NBI will pursue you wherever you hide—online or onsite. The long arms of the law extend into the cyber realm—and we will find you.” 

He added, “We will pull out all the stops. Online or onsite, the BIR will do everything it can to stop illicit trade.”

The raid targeted two locations in Guiguinto, Bulacan: a vape lounge acting as a front for underground vape distribution and a makeshift warehouse located in a residential house. Inside these premises, authorities discovered 4,789 salt nicotine units and 14,022 conventional vape products, along with fake internal revenue excise stamps and counterfeit disposable vapes. 

Lumagui explained the potential impact of the seizure, saying, “To put the scale of the haul into perspective—kung conservative po tayo [being conservative]—assuming one disposable vape lasts an average user one week, this means that 18,811 seized units could supply over 4,700 underage users for a month, assuming each one vapes daily.” 

He further elaborated, “So, close to 5,000 kids could be vaping for an entire month from the products we seized in just one operation. These aren’t just tax violations—they are threats to the health of our children. That’s why we’re going after illicit traders, whether they operate in public markets or hide behind Facebook accounts and residential homes.”

Several employees, including online sales agents, found during the raid are facing criminal charges alongside the proprietor. 

These charges include multiple violations of the National Internal Revenue Code (NIRC), specifically Sections 263 (Unlawful Possession of Articles Subject to Excise Tax Without Payment), 263-A (Sale of Vapor Products Below Combined Excise and VAT), 264 (Failure to Issue Required Receipts), 265 (Offenses Related to Counterfeit Stamps), 254 (Attempt to Evade or Defeat Tax), and 255 (Failure to Provide Accurate Tax Information). Additionally, charges under Article 172 of the Revised Penal Code (Falsification of Commercial Documents) are being prepared.

The BIR estimated the total deficiency tax assessment from this operation at ₱36.51 million, which includes surcharges, interest, and penalties. The basic excise tax liability from the confiscated products alone is pegged at ₱3.49 million. 

The BIR noted that the business employed an illicit layering scheme, utilizing a mix of registered and unregistered receipts to mask illegal sales.

 However, Lumagui revealed that the BIR's new strip stamps have made it easier for agents to identify fake and untaxed products. 

He further highlighted the significant increase in vape excise tax collections following the 2024 rollout of the digital stamp verification system. 

In 2023, only 11.2 million milliliters of vape liquids were taxed, generating ₱223.75 million. After the stamp system's implementation in June 2024, collections surged to ₱942 million from 130 million milliliters in just one year. 

Lumagui urged public vigilance, stating, “Illicit vape sellers are hiding their products in residential houses. They are hiding their illicit operations in residential communities. If you suspect that your neighbor is engaged in the selling or warehousing of illicit vape products, immediately report the same to the BIR. Illicit vape criminals have no place in our neighborhoods.”