As the Christmas shopping season approaches. The Philippines’ Bureau of Internal Revenue (BIR) has heightened its enforcement vigilance against illicit vapes and tobacco products, directing regional and enforcement offices to intensify monitoring of manufacturing sites, warehouses, distribution channels, and retail outlets. Previously, in August, the BIR destroyed 240,550 illicit vape products, representing an estimated tax liability of approximately PHP 1.53 billion. A nationwide tax compliance operation in July also inspected 3,590 business establishments dealing in tobacco and vaping products.
Key Highlights
- The BIR stated that enforcement teams are on high alert due to the increased risk of illicit vapes and tobacco products entering the market as demand rises during the holiday season.
- The BIR has directed regional and enforcement offices to step up monitoring of suspected manufacturing sites, warehouses, distribution channels, and retail outlets, and to conduct joint operations when necessary.
- On August 24, the BIR destroyed 240,550 illicit vape products with an estimated tax liability of approximately PHP 1.53 billion.
- A nationwide tax compliance operation in July inspected 3,590 relevant establishments, resulting in the seizure of 8,634 e-cigarette products and 22,251 packs of cigarettes.
BIR Steps Up Enforcement Before the Holiday Season
September 17, 2026. According to a report by the Philippine News Agency (PNA) on September 16, the Bureau of Internal Revenue (BIR) is intensifying enforcement against illicit e-cigarettes and tobacco products as the Christmas shopping season nears, requiring regional and enforcement offices to expand monitoring across manufacturing, warehousing, distribution, and retail stages.
BIR Commissioner Charlito Martin Mendoza stated that intelligence and market data indicate a heightened risk of illicit e-cigarettes and tobacco products entering the market due to rising holiday demand; consequently, enforcement teams have been placed on high alert.
The BIR has instructed regional and enforcement offices to strengthen monitoring of suspected manufacturing sites, warehouses, distribution channels, and retail outlets, and to coordinate enforcement operations where necessary.
Enforcement Covers the Entire Supply Chain
This operation expands the focus of inspections beyond end-stage retail to include other segments of the supply chain. The BIR has also called upon legitimate businesses, retailers, and the public to provide information regarding the illegal manufacture, storage, distribution, or sale of e-cigarettes and tobacco products.
This follows several rounds of nationwide tax compliance operations targeting tobacco and vaping products conducted by the BIR.
July Inspections Targeted Thousands of Businesses
On July 20 of this year, the BIR simultaneously inspected approximately 3,590 business premises selling and distributing cigarettes, vaping products, and heated tobacco products across 22 revenue regions, identifying 1,793 individuals involved in various tax compliance violations.
This operation resulted in the seizure of 8,634 e-cigarette products and 22,251 packs of cigarettes, with an estimated tax liability of approximately PHP 16.54 million. Violations included failure to register with the BIR as required by law, failure to issue invoices, failure to maintain prescribed accounting records, and possession of taxable products lacking the required tax stamps.
BIR Destroyed More Than 240,000 Illicit E-Cigarettes
On August 24, the BIR destroyed 240,550 previously seized illegal e-cigarette products at a waste disposal facility in Porac, Pampanga; the estimated tax liability associated with these goods was approximately PHP 1.53 billion.
The BIR stated that the destruction operation aimed to ensure the seized illegal products were permanently removed from the market and to continue holding parties accountable for the illegal manufacture, importation, distribution, and sale of such goods.
BIR Expands E-Cigarette Enforcement to Warehouses
The BIR’s Manila region had previously expanded the scope of its e-cigarette enforcement from individual retail outlets to warehouses. The agency described the operation against Tap Fog Philippines as its largest single enforcement action against illegal vapes to date, with some of the seized products subsequently included in the August destruction process.
In early September, the BIR once again highlighted illegal e-cigarettes as a priority area in its summary of nationwide enforcement activities and stated that follow-up inspections would continue.
Enforcement Expected to Continue Through the Peak Season
As the Philippines enters the traditional year-end peak consumer season, the latest directives have further extended the enforcement focus to cover the entire supply chain, including production, warehousing, distribution, and retail.
