BIR Commissioner Lumagui’s Nationwide Crackdown on Illicit Vape Trade

817 Establishments Raided, 563,284 Units Seized, Php 415M in Tax Liabilities Uncovered

The Bureau of Internal Revenue (BIR) has made significant progress in its battle against illicit vape sellers, with Commissioner Romeo D. Lumagui Jr. spearheading a nationwide crackdown. In just one month, the operation has raided hundreds of establishments, seized over half a million vape products, and uncovered unpaid taxes amounting to over Php 415 million.

NATIONWIDE OPERATION AGAINST ILLICIT VAPES

BIR Commissioner Romeo D. Lumagui Jr. announced that the agency’s intensified operations from October 16 to November 22, 2024, have yielded impressive results. A total of 817 illicit vape retailers and resellers were raided, leading to the confiscation of 563,284 vape units and pods. The operations revealed an estimated tax liability of Php 415,359,656.72, inclusive of penalties.

“817 illicit vape retailers/resellers raided. 563,284 units/pods of illicit vape seized. Php 415M in total tax liability. The BIR will continue its war against illicit vape. Report all stores with illicit vape to commissioner@bir.gov.ph,” Commissioner Lumagui emphasized.

EXPOSING THE SECRET TRADE

One high-profile raid, led personally by Commissioner Lumagui, took place at a vape store along Tomas Morato in Quezon City. The establishment was found offering illicit vape products via a “secret menu.” Customers could browse this hidden list, and employees would retrieve the products from concealed storage at the back of the shop.

COMMON VIOLATIONS IDENTIFIED

The crackdown revealed recurring violations among illicit vape sellers, including:

Failure to affix internal revenue stamps,

Non-payment of excise taxes, and

Non-registration of vape brands.

These practices not only violate tax laws but also distort fair competition, disadvantaging compliant businesses.

THE SHIFT TO ONLINE PLATFORMS

In response to increasing physical raids, many sellers have moved their operations online, using e-marketplaces and social platforms to evade detection. Reports received by the BIR reveal that illicit vape products and counterfeit cigarettes are being discreetly sold online, often under hidden names or codes.

“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. 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 commissioner@bir.gov.ph,” Commissioner Lumagui emphasized.

The Commissioner called for greater collaboration between government agencies, online platforms, and the public in addressing this issue. By targeting both physical and digital operations, the BIR aims to ensure fair competition, protect consumers, and recover lost tax revenues.

“The BIR will remain relentless in its war against illicit vape. Report all violations to commissioner@bir.gov.ph,” he concluded.