Vape products found with P151 million tax deficiencies

MANILA, Philippines — More vape products are found evading tax liabilities of around P151 million as the Bureau of Internal Revenue ramps up its enforcement activities.

The BIR recently raided three warehouses in Manila and Rizal where it confiscated 63,139 units of vape products.

For the latest raid, the BIR said total deficiency in taxes reached P151.1 million.

Over the past months, the BIR has been conducting seizure operations among illegal vape sellers in the country.

This developed as the revenue agency prioritizes the enforcement of excise taxes against excisable goods such as vape products.

Individuals associated with the warehouses will face criminal and civil cases in violation of value added tax on sale of goods or properties, filing of return and payment of excise tax on domestic products and imported articles, unlawful possession or removal of articles subject to excise tax and attempt to evade or defeat taxes under the Tax Code.

BIR Commissioner Romeo Lumagui encouraged vape businesses anew to register their operations and pay the proper excise taxes.

“The raids and confiscation of vape businesses and products is the result of non-registration and non-payment of excise taxes,” Lumagui said.

In May last year, the BIR lowered the floor price for vape products as the government took into account the latest market conditions.

Vapor products are fairly new products and manufacturers are constantly testing product mix and are pulling out and adding new variants.

The BIR maintained that selling of vapes and other tobacco products at a price lower than the combined excise taxes and value added tax imposed under the law is prohibited.

It also reiterated penalties for violators selling at lower prices including fines of P200,000 to P500,000 and imprisonment of up to six years.