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Manila Bulletin devider Philippines devider National devider BIR steps up drive vs untaxed cigarettes, vape products

BIR steps up drive vs untaxed cigarettes, vape products

Published May 13, 2024 06:13 am

The Bureau of Internal Revenue (BIR) has intensified its efforts against the illicit trade of untaxed cigarettes and vape products, which have cost the government billions of pesos in lost taxes.

BIR Commissioner Romeo D. Lumagui Jr. has issued a directive to regional directors and specialized audit divisions of the large taxpayers service following a recent meeting in Malacanang attended by President Ferdinand R. Marcos Jr. 

"The illegal sale of vape and cigarettes, whether online or in stores, constitutes tax evasion," Lumagui had emphasized.

 He reiterated the BIR's commitment to continue crackdowns and pursue criminal charges against individuals and businesses involved in this illicit trade.

Since 2022, Lumagui has spearheaded raids and legal actions worth billions of pesos against illegal traders. A Manila court has already issued warrants for vape traders, with seizures made in 2022 prompting legal actions.

 The bureau also filed tax evasion charges against cigarette traders last year, coinciding with nationwide operations to seize contraband.

To further regulate vape sales, the BIR will mandate traders to purchase and affix tax stamps on vape products starting next month.

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