BIR heightens crackdown on illicit vapes, tobacco

The Bureau of Internal Revenue has placed its enforcement units on heightened alert against illicit vape and tobacco products as consumer activity increases during the “Ber” months and ahead of the Christmas season.

The stepped-up campaign is aimed at protecting government revenues and legitimate businesses while limiting the circulation of untaxed and potentially noncompliant products during the year’s peak shopping period.

Illicit trade in vape and tobacco products can erode excise-tax collections, disadvantage businesses that comply with tax and regulatory requirements, and expose consumers to products sold outside established legal channels.

BIR Commissioner Charlito Martin R. Mendoza said intelligence and market information point to a greater risk of illegal products reaching consumers as holiday demand strengthens.

“We are receiving intelligence and market information on the increased risk of illicit vape and tobacco products entering the market as holiday demand picks up. Our enforcement teams are already on high alert. There will be no holiday for enforcement against illicit vape and tobacco,” Commissioner Mendoza said.

The BIR has directed its regional and enforcement offices to intensify monitoring of suspected production sites.

Authorities were also ordered to strengthen surveillance of warehouses that may be used to store illicit vape and tobacco products.

The bureau is likewise monitoring distribution channels and retail outlets as part of the enforcement drive.

Regional and enforcement offices were instructed to coordinate operations when necessary.

The heightened alert builds on continuing BIR operations nationwide targeting illegal vape and tobacco products.

Those operations include the seizure and lawful destruction of illicit goods found in violation of tax and other applicable requirements.

The bureau is also assessing tax liabilities arising from enforcement actions.

Appropriate cases are being filed against violators as part of the continuing campaign.

The crackdown is particularly significant during the holiday season, when stronger consumer demand and increased retail activity can create more opportunities for illicit products to enter formal and informal distribution networks.

For the government, tighter enforcement also supports efforts to preserve excise-tax collections from tobacco and vapor products, which form part of public revenues used to finance government programs and services.

For legitimate manufacturers and retailers, stronger enforcement can help address unfair competition from sellers able to offer lower prices by avoiding taxes and regulatory costs.

The BIR urged legitimate industry players to report information involving suspected illegal manufacture of vape and tobacco products.

Retailers were also encouraged to provide information about suspected unlawful storage, distribution, or sale.

The bureau likewise called on the public to report information that could help authorities identify and act against illicit vape and tobacco operations.