The Philippine Internal Revenue Service Has Cracked Down On Tax Evasion Related To E-cigarettes And Seized 18,800 Illegal E-cigarettes.

The Philippine Bureau of Internal Revenue (BIR) is cracking down on tax evasion related to e-cigarettes. Recently, 18,811 pieces of illegal e-cigarette products and fake tax receipts were seized, involving a total tax amount of 36.51 million pesos (approximately 4.7 million yuan).
The BIR stated in a statement that on May 30th, in Jigintuo, Balakan Province, the BIR, in collaboration with the Organized and Transnational Crime Division of the National Investigation Bureau, carried out a raid operation. These illegal e-cigarette products were confiscated. The BIR said that this law enforcement action stemmed from monitoring online sales activities on Facebook.
The BIR's director, Romeo Lumagui, said: "We are sending a loud and clear message to those who sell illegal e-cigarette products that no matter where you hide - online or offline - the BIR and the National Investigation Bureau will pursue you to the end. We will spare no effort and do everything possible to stop illegal trade."
The law enforcement team conducted a surprise search of a clandestine e-cigarette distribution point disguised as an e-cigarette lounge and a temporary warehouse located in a private residence. At the scene, the law enforcement team seized 4,789 nicotine salt devices and 14,022 regular e-cigarette products, as well as counterfeit tax receipts and counterfeit disposable e-cigarettes.

Lumajig explained: "To help everyone understand the scale of this seizure, we made a conservative estimate, assuming that one disposable electronic cigarette can be used by an average user for a week. This means that the 18,811 products seized, if each person uses it daily, could be used by over 4,700 minors for a month. Therefore, this is not just a tax evasion issue - it poses a threat to our children's health. This is why we need to crack down on illegal traders, whether they operate in public markets or hide behind Facebook accounts and residential houses."
The several employees responsible for online and offline operations (including online sales agents) found during this law enforcement operation will face criminal charges together with the operators for allegedly violating multiple provisions of the National Tax Code. The authorities are also preparing to file charges against them under Article 172 of the Revised Criminal Code (the crime of forging commercial documents).
According to the Philippine Internal Revenue Service, since the launch of the electronic cigarette tax system last year, the national consumption tax revenue has increased. In 2023, a total of 11.2 million milliliters of electronic cigarette liquid were taxed, generating 223.75 million pesos in tax revenue. After the implementation of the electronic cigarette tax in June 2024, the tax revenue soared to 942 million pesos.