The Bureau of Internal Revenue (BIR) has cracked down on 506 unlicensed vape retailers and resellers across the Philippines as of October, with tax liabilities and penalties totaling PHP181.69 million.
Commissioner Romeo Lumagui Jr. revealed that the BIR’s efforts have uncovered massive tax evasion within the illicit vape industry. The unpaid taxes and penalties highlight a significant loss of revenue for the government.
This figure includes both the unpaid excise taxes and the penalties imposed on violators.
The most common violations involve non-payment of excise taxes, absence of internal revenue stamps, and lack of proper BIR registration for vape products. These infractions contribute to unfair competition against businesses complying with tax laws.
It’s a wake-up call for the industry.
BIR Intensifies Nationwide Crackdown
As of October 2024, the BIR has ramped up operations against illicit vape sellers. According to Lumagui, after a nationwide raid on October 16, there was a noticeable spike in the number of illegal vape stores detected. The agency plans to release regular updates on the ongoing crackdown.
Non-compliant retailers are under the microscope.
The BIR emphasizes that these efforts aim to level the playing field for legitimate businesses and protect consumers from unregulated products. Future updates will include the total number of illicit vape stores and their cumulative tax liabilities.
- Identifying unregistered vape retailers
- Ensuring payment of excise taxes
- Enforcing the use of internal revenue stamps
Retailers are urged to comply with regulations to avoid hefty penalties.
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