BIR files P8.7-B tax evasion complaint vs vape traders

THE Bureau of Internal Revenue (BIR) on Tuesday filed a criminal complaint against several large-scale vape businesses for allegedly evading P8.7 billion in taxes.

The cases, filed before the Department of Justice (DoJ), target companies linked to the sale of three vape brands — Flava, Denkat and Flare — Internal Revenue Commissioner Romeo D. Lumagui, Jr. said in a statement.

The charges include unlawful possession of vape products without payment of excise tax, tax evasion and failure to file excise tax returns under the National Internal Revenue Code of 1997.

The BIR seeks to recover almost P9-billion in unpaid excise taxes and penalties from the vape traders.

The move is part of the bureau’s broader campaign to tighten oversight of the fast-growing vape market, which Mr. Lumagui said would face stricter tax enforcement.

He said celebrities and influencers found promoting illicit vape products could also face prosecution.

“Expect more criminal cases to be filed against illicit vape traders,” he said. “Whether your business is large or small, as long as you sell illicit vapes, you will be imprisoned.”

“Celebrities and influencers found to be in conspiracy with illicit vape traders will also be imprisoned. Illicit vape ends now,” he added.

The BIR, which has conducted multiple raids in recent months, has urged the public to report establishments selling untaxed vape products.

It also reminded advertisers and promoters to ensure they only endorse tax-compliant products, warning that violators would face legal action.

The intensified campaign comes amid growing concerns over the proliferation of unregulated vape products in the Philippine market, which authorities said undermine both public health and government revenue. — Chloe Mari A. Hufana