The Bureau of Internal Revenue (BIR) on Tuesday filed before the Department of Justice P1.2 billion tax evasion charges against five illegal vape traders who were caught selling smuggled and untaxed vape products.
The BIR identified the respondents as Wei Feng Bao, Christina Poa, Sandoval Severino Briones, Jimmy Go and Bibiano Lesaca.
They were also facing preliminary investigation for violations of Republic Act No. 111346 or An Act Increasing the Excise Tax on Tobacco Products, Imposing Excise Tax on Heated Tobacco Products and Vapor Products and Increasing the Penalties for Violations of Provisions on Articles Subject to Excise Tax, as well as the National Internal Revenue Code of 1997.
BIR Commissioner Romeo Lumagui Jr., who personally led the filing of the complaint, said the government is very serious in its crackdown against illegal vape traders not paying the correct taxes.
It is the first tax evasion filed under the administration of President Ferdinand Marcos Jr.,
“I hope this serves yet another warning to those who think that they can continue to evade the payment of their taxes. We are hands-on and focused in our job, and we take this very seriously,” Lumagui stressed.
He also called on those who are planning to sell vape products and cigarettes to register, otherwise, they will be considered illegal and subject to confiscation and filing of appropriate charges,
The filing of the complaint stemmed from a raid conducted by a specialized team on the onsite and online business operations of the accused in Binondo, Manila last month.
The operation led to the seizure of approximately 50,000 to 100,000 units of vapes, 899 boxes of untaxed excisable articles composed of 175,050 pieces of pods, and 61,400 pieces of bottled flavored juice.
The estimated value of the items seized ranged from P15 million to P30 million with taxes and penalties reaching around P1.2 billion.
The BIR earlier said the government loses around P1.4 billion in revenue annually due to smuggling of vapes.
“The popularity and wide use of vape as a smoking alternative has tempted many unscrupulous businessmen and traders to import and sell them illegally. As a word of advice, they should go through the proper and lawful channels, and make sure that they are in full regulatory compliance. Otherwise, we will confiscate their illegal products and file the corresponding criminal charges against them,” Lumagui added.