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  • Philippines Simultaneously Destroys $22.8M in Illicit Vapes

    Philippines Simultaneously Destroys $22.8M in Illicit Vapes

    Today (December 15), the Philippines Bureau of Internal Revenue (BIR) simultaneously destroyed 448,494 illicit vape products nationwide, involving an estimated PHP1.34 billion ($22.8 million) in unpaid taxes and penalties. The destruction formed part of a three-day anti-illicit trade campaign and was publicly live-streamed to demonstrate transparency and enforcement.

    BIR Commissioner Charlito Martin Mendoza said the action sends a clear message that the government will not tolerate the sale of vape products without proper excise tax stamps. He stressed that excise taxes on vape and other “sin products” are meant both to discourage consumption and to fund government healthcare programs.

    Mendoza said enforcement will intensify to remove unstamped products from the market and prevent risks to consumers.

  • Weak Enforcement, Not High Taxes, Lead to Illicit Trade: Philippine Study

    Weak Enforcement, Not High Taxes, Lead to Illicit Trade: Philippine Study

    The Action for Economic Reforms (AER) and Philippine government officials oppose bills seeking to cut tobacco excise taxes, warning the move could increase smoking rates and reduce government revenues without addressing illicit trade. A joint study by AER and Johns Hopkins Bloomberg School of Public Health argues that high tobacco taxes do not drive illicit trade, but it is instead a product of weak enforcement and local governance.

    AER projects up to two million new smokers by 2035 and P167 billion ($2.8 billion) in lost revenue if taxes are lowered. Officials, including Senator Risa Hontiveros-Baraquel and BIR Commissioner Romeo Lumagui, stressed that stronger enforcement, a nationwide licensing system, and an upgraded track-and-trace program are key to curbing illicit tobacco sales and protecting public health.

  • Philippines to Use Tobacco Products to Raise More Tax Money in 2026

    Philippines to Use Tobacco Products to Raise More Tax Money in 2026

    The Philippines’ Bureau of Internal Revenue (BIR) is looking to increase excise tax collections by 9.35% in 2026, mainly driven by tobacco products. In the 2026 Budget of Expenditures and Sources of Financing (BESF), the government is set to collect P359.65 billion ($6.1 billion) in excise taxes on selected goods, including P166.57 billion ($2.8 billion) from tobacco products.

    BIR Commissioner Romeo D. Lumagui, Jr. said in addition to Health department’s campaign to discourage tobacco use, the government loses an estimated P114 billion ($2 billion) in revenues due to illicit tobacco trade. He said illicit tobacco manufacturers are using economic zones to avoid paying excise taxes even though the products are sold in the Philippines.

    “If it’s meant for export and not for local consumption, there’s no excise tax,” Lumagui said. “It’s being manufactured here in the ecozones. That’s what they’re trying to show — that the license they’re getting is for exporting all these products.”  

  • 75 Tax Evasion Cases Filed in Philippines Crackdown

    75 Tax Evasion Cases Filed in Philippines Crackdown

    The Bureau of Internal Revenue (BIR) in the Philippines filed 75 tax evasion complaints against vape retailers nationwide, accusing them of evading a combined ₱711.3 million ($12.8 million) in taxes by selling smuggled and unstamped products.

    BIR Commissioner Romeo Lumagui Jr. said the cases, lodged with the Department of Justice today (August 20), involve violations ranging from unpaid excise duties to failure to file tax returns. The crackdown follows earlier billion-peso cases against major brands like Flava, Denkat, Flare, and Tap Fog.

    “The government loses billions from illicit vape sales — money that should fund health care and infrastructure,” Lumagui said, vowing continued action against both big and small operators.

  • Philippines Cracking Down on Illegal Cigarettes, Criminals

    Philippines Cracking Down on Illegal Cigarettes, Criminals

    The Bureau of Internal Revenue (BIR) in the Philippines filed tax evasion charges totaling nearly ₱797 million ($14.3 million) against individuals involved in the large-scale illegal cigarette trade, intensifying its crackdown on illicit tobacco and vape operations. BIR Commissioner Romeo Lumagui Jr. announced that the charges stemmed from two recent raids.

    In Valenzuela City, authorities seized 600 master cases of untaxed cigarettes from a warehouse, with estimated tax liabilities of ₱200.7 million ($3.6 million). The lessee of the facility now faces criminal charges.

    A separate raid in San Rafael, Bulacan, uncovered an illegal cigarette factory allegedly operated by a Chinese national. The BIR recovered 7,884 master cases of illicit cigarettes and manufacturing equipment, worth ₱596.2 million ($10.7 million). The suspect also faces human trafficking charges after 155 workers were rescued from the facility.

    In a third similar bust, the National Bureau of Investigation (NBI) and the Department of Trade and Industry (DTI) arrested five individuals in Sta. Cruz, Manila, for allegedly selling unregistered vape products online. More than 25,000 vape units worth ₱8.16 million ($147,000) were confiscated in the joint operation, following test-buy and surveillance efforts. The suspects face charges for violating trade and consumer protection laws.

  • Philippines Planning Track-and-Trace System for Consumer Use

    Philippines Planning Track-and-Trace System for Consumer Use

    The Bureau of Internal Revenue (BIR) in the Philippines is set to roll out a digital track-and-trace system next year that will enable the public to verify the legitimacy of cigarette and vape products using QR codes, BIR Commissioner Romeo Lumagui Jr. said.

    The new system, being developed through a public-private partnership, will allow consumers to scan QR codes on product packaging using their mobile phones. The scanned information will link to a secure website providing detailed data on product origin, legitimacy, and tax compliance.

    Currently, the BIR uses its Internal Revenue Stamp Integrated System exclusively, which only government devices can verify. The planned QR tracker expands verification capabilities to the public, helping expose illicit cigarette and vape products and address loopholes such as fake export claims used to evade excise taxes.

    The rollout faced delays due to procurement and budget concerns, requiring approval from the Department of Economy, Planning and Development (formerly NEDA) and the Department of Finance. A feasibility study and revised terms of reference are currently under review.

  • Philippines Eyes Tobacco Tax Changes as Illicits Worsen

    Philippines Eyes Tobacco Tax Changes as Illicits Worsen

    During the Philippines’ Senate Committee on Ways and Means hearing yesterday (May 19), Bureau of Internal Revenue (BIR) assistant commissioner Jethro Sabariaga said cigarettes and heated-tobacco products should be taxed the same, but argued that vape products should be taxed much higher.

    “One vape product is not the same as the consumption of one pack of cigarettes,” Sabariaga said. “The government will be losing a lot as vape is consumed for a longer period of time.” 

    The BIR’s proposal comes as the Senate deliberated proposals to amend the excise tax on tobacco products amid worsening illicit trade. A counterpart measure in the House of Representatives seeks to lower the current tobacco excise tax rate, which increases 5% annually. Others proposed a unitary tax system for vapor products and ad valorem tax on vaping devices.

    During the same hearing, Philip Morris International-Fortune Tobacco Corp. maintained that the government needs to rationalize the tax rates amid ineffectiveness leading to lower government revenues. Instead of the 5% annual increase, PMFTC proposed an odd-even scheme for hiking the tobacco excise taxes: 0% every even-numbered year and 6% every odd-numbered year. PMFTC said such a scheme could boost revenues by up to P120 billion ($2.2 billion) every year.

  • Philippines Files Tax Evasion Case Against Vape Brands 

    Philippines Files Tax Evasion Case Against Vape Brands 

    The Philippines Bureau of Internal Revenue (BIR) filed tax evasion complaints against several vape brands due to alleged evasion of over P8.7 billion ($157 million) in taxes. The complaint was filed by BIR Commissioner Romero Lumagui Jr. before the Department of Justice on Tuesday (April 29), against vape firms carrying the brand names Flava, Denkat, and Flare.

    “It was confirmed that the excise [taxes] on these products were not paid. All of them are illicit,” Lumagui said. “This is what happens when you keep violating our tax laws. We are continuing our monitoring of the vape industry, so you can expect that this will not be the last time we file a case.”

    He also said that with the continued proliferation of illicit vape products in the market, the government’s total loss is probably billions more. The BIR said that it seized 560,000 units of vape products in 2024, representing P415 million ($7.5 million) in unpaid taxes. 

    In addition to tax evasion, the charges filed also include the illegal possession of vape products without the required excise tax under Section 263 of the National Internal Revenue Code, as well as failure to submit excise tax returns.