The Philippines’ National Revenue Agency, worried about whether a $1 billion (17 million) tax on vapes will be able to plug its fiscal deficit in 2024, said it would not stop raids on illegal vape retailers or distributors until the industry complied.
The Philippine Internal Revenue Service (BIR) Director General Romeo D. Lumagui has said that the stamp duty on vapes collected from the stamp duty on vapes is not sure if 1 billion pesos (about $17 million) will be enough to fill the country. 2024 excise tax deficit.
Since the system is just starting up, Lumaghi noted that this benefit may not be enough for now.
In May, the BIR required vape brands to print before distribution to improve tax compliance. According to Tax Memorandum No. 59-2024, the tax printing system is similar to tobacco and is designed to monitor sales and ensure proper taxation. Unprinted vape brands will be seized and owners will face tax evasion charges.
Despite the GST challenge, Lumaguey is confident about BIR’s overall performance, noting that fiscal revenue has achieved double-digit growth.
- “I knew we were doing well because we were growing at double digits. This is more important than inflation and GDP. As long as BIR’s performance maintains this growth rate, it’s good.”
Recently, the BIR has stepped up its crackdown on illegal vape retailers. After the nationwide raids on 16 October, the number of raids per week increased. As of October 31, 506 illegal vape shops had been seized. These companies are often in violation of the law because of their failure to pay excise taxes, and lack of tax printing and registration.
Lumaguey warned: “Until the vape industry complies with our tax laws and regulations, the BIR will not stop raids on illegal vape retailers or distributors. Regular raids are expected.”
