The Bureau of Internal Revenue (BIR) has raked in around P1 billion from the implementation of tax stamps on vape products.
BIR commissioner Romeo Lumagui Jr. told reporters in a briefing in Quezon City Tuesday evening the amount has been collected following the mandatory implementation of internal revenue stamps for all imported and locally manufactured vape products in the market beginning June 1, 2024.
“Before, there was practically no collection from vape products,” Lumagui said.
While the amount may appear significant, the BIR chief said there is still room to collect more tax revenues from vape.
“The majority in the market still doesn’t have stamps. So maybe that (P1 billion) accounts for only less than 10 to 20 percent (of the total potential collection),” Lumagui said.
In a statement yesterday, the BIR reported it has seized a total of 506 illicit vape retailers/resellers as of October 31.
“After our nationwide raid last October 16, there was a substantial increase of illicit vape stores. The BIR will not stop raiding illicit vape retailers/resellers until the vape industry complies with our tax laws and regulations,” Lumagui said.
The BIR estimates a tax liability, inclusive of penalties, of P181.7 million as a result of these continuous raids. Non-payment of excise taxes, lack of internal revenue stamps and lack of BIR registration of the vape products are the common violations of illicit vape retailers/resellers,” he added.
