Cigarettes, vapes found with P7.2 billion tax liabilities in H1

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has confiscated cigarettes and vape products with P7.2 billion in tax liabilities in the first half as the illegal entry and sale of the commodities remain a problem.

During the Bagong Pilipinas Ngayon briefing yesterday, BIR Commissioner Romeo Lumagui said the revenue agency has so far seized over 500,000 packs of cigarettes and 170,000 vape products from January to June.

The products have a combined tax liability of P7.2 billion.

“We continue our nationwide raid on illicit cigarettes and vapes, not just those with retail but more so in warehouses and big sellers,” Lumagui said.

“We also have been issuing regulations to focus on manufacturers and sellers of cigarettes,” he said.

Similarly, the BIR is implementing the mandatory tax stamps on all imported and locally manufactured vape products.

This is a way for the BIR to check if the correct excise taxes have been paid by the industry.

The BIR said the non-payment of excise taxes would make the vape products subject to seizure with the business likely to face criminal liabilities.

Lumagui said the BIR stamps have security features amid attempts to put fake ones in the sin products.

For vape alone, it is estimated that the government is losing at least P5 billion in revenues from continued smuggling and illegal selling of the product.