BIR Targets Illicit Vape Retailers in Major Tax Evasion Crackdown
The Bureau of Internal Revenue (BIR) has taken decisive action by filing 75 tax evasion cases against illicit vape retailers and sellers. These complaints involve alleged liabilities totaling P711.3 million, highlighting a significant crackdown on illegal activities within the vaping industry.
According to officials, these cases cover multiple violations of the Tax Code. Among the charges are Tax Evasion, Unlawful Possession or Removal of Articles Subject to Excise Tax Without Payment of Tax, and Failure to File Excise Tax Returns.
Unpaid Excise Taxes Linked to Smuggled Vape Products
Local authorities explained that the retailers targeted were caught during raids where vape products were confiscated. “Those involved are the retailers we raided, caught, and from whom we confiscated products, and we proved that the excise taxes on the vapes they were selling had not been paid,” a BIR official said in Filipino during an interview.
It was further noted that these retailers were selling smuggled vape products unregistered with both the BIR and the Department of Trade and Industry (DTI). This lack of registration means excise taxes were never paid, resulting in substantial government revenue losses.
Billions Lost in Government Revenue from Untaxed Vapes
Officials reported that because these vape products bypassed the tax system, the government missed out on billions of pesos in potential revenue. “Instead of being able to collect the excise tax here, which could have helped fund our healthcare system and infrastructure projects—we are losing a lot. Billions are being lost in this industry,” the source explained in a mix of Filipino and English.
Authorities reminded the public to only purchase vape products that are legally registered and bear the official BIR tax stamps. “If you don’t see a stamp, the tamaraw stamp attached there, then it is surely illegal, and we should not patronize it,” one official emphasized.
Continued BIR Efforts to Combat Illegal Vape Sales
Government officials assured that the BIR will maintain its vigilance by conducting ongoing raids and inspections to suppress the illegal sale of untaxed vape products. These efforts aim to protect government revenue and ensure compliance with tax laws.
Consumers are urged to remain cautious and support only legitimate sellers to help curb the illegal vaping market and its negative impact on the economy.
For more news and updates on tax evasion cases, visit Filipinokami.com.
