The Philippine Internal Revenue Service (BIR) is stepping up its crackdown on tax evasion and illegal trade in the vape and tobacco industry. Including destroying illegal cigarettes and smuggled vape products and instituting criminal proceedings against violators.
Key points:
1. The Philippine Internal Revenue Service (BIR) will intensify its crackdown on tax evasion and illegal trade activities in the tobacco and vape industries.
2. BIR and the General Administration of Customs (BOC) led the destruction of smuggled products worth 3.26 billion pesos (about 57 million US dollars), demonstrating the government’s determination to combat illegal trade.
3. Philippine President Marcos attended the destruction of smuggled vape products, stressing that the criminal elements behind the illegal trade will continue to be tracked down.
The Philippine Internal Revenue Service (BIR) is intensifying its crackdown on emerging and long-standing tax evasion activities, especially in the vape and tobacco industries.
BIR Director Romeo Lumagui Jr. said at a news conference on Thursday that this is part of a comprehensive approach by the Marcos administration to address the threat to public health from illegal trade and revenue loss, as well as unregulated products.
He noted that the BIR carries out ongoing enforcement actions, including destroying counterfeit and duty-unpaid cigarettes and instituting criminal proceedings against offenders. In March 2025, the BIR destroyed approximately 14.3 million packages of illegal cigarettes seized from multiple operations in Pampanga province, with estimated tax losses of approximately P6.3 billion (US $110 million).
BIR has filed a P8.5 billion (US $150 million) tax evasion lawsuit against Chinese nationals and companies following a raid on illegal cigarette factories and warehouses in the San Simon District, Pampanga province.
Lumaguey noted that the destruction of smuggled vape products worth 3.26 billion pesos (about $57 million) led by the BIR and the General Administration of Customs (BOC) is another milestone in the Philippine government’s fight against illegal trade.
Philippine President Ferdinand R. Marcos Jr., who attended the destruction in South Port, praised the BIR for its continued enforcement efforts while noting that the tax authorities have aggressively pursued warehouse seizures in line with the government’s anti-illicit trade campaign.
Lumagi reiterated the agency’s commitment to tracking down the perpetrators behind the illegal trade through law enforcement and prosecution.
- “There are also a lot of illegal factory and cigarette smuggling operations. So we are focused on cracking down on the sale of illegal vapes and cigarette products.”
