The Bureau of Internal Revenue (BIR), led by Commissioner Romeo Lumagui Jr., in coordination with the National Bureau of Investigation (NBI)-Organized and Transnational Crimes Division, seized 18,811 vape products and counterfeit tax stamps during a May 30 raid in Guiguinto, Bulacan.
The operation targeted an online-enabled illicit vape operation fronting as a legitimate business, following surveillance of Facebook sales activities that provided grounds for search warrants.
“We want to send a loud and clear message to those selling illicit vape products: the BIR and NBI will pursue you wherever you hide—online or onsite,” Lumagui said. “The long arms of the law extend into the cyber realm—and we will find you.”
Authorities raided two establishments: a vape lounge serving as a front for underground distribution and a makeshift warehouse in a residential house. They found 4,789 salt nicotine units, 14,022 conventional vape products, fake excise stamps, and counterfeit disposable vapes.
“To put the scale of the haul into perspective—kung conservative po tayo—assuming one disposable vape lasts an average user one week, this means that 18,811 seized units could supply over 4,700 underage users for a month, assuming each one vapes daily,” Lumagui explained.
“These aren’t just tax violations—they are a threat to the health of our children. That’s why we’re going after illicit traders, whether they operate in public markets or hide behind Facebook accounts and residential homes.”
Several employees, including online sales agents, will face criminal charges alongside the proprietor for multiple National Internal Revenue Code (NIRC) violations including Section 263 (Unlawful Possession of Articles Subject to Excise Tax Without Payment), Section 263-A (Sale of Vapor Products Below Combined Excise and VAT), Section 264 (Failure to Issue Required Receipts), Section 265 (Offenses Related to Counterfeit Stamps), Section 254 (Attempt to Evade or Defeat Tax), and Section 255 (Failure to Provide Accurate Tax Information). Charges under Article 172 of the Revised Penal Code (Falsification of Commercial Documents) are also being prepared.
The BIR estimates total deficiency tax assessment at ₱36.51 million, with basic excise tax liability from confiscated products at ₱3.49 million.
The business employed a criminal layering scheme, issuing mixed registered and unregistered receipts to mask illegal sales. However, the BIR’s new strip stamps have simplified identification of fake products.
Vape excise collections surged after the June 2024 digital stamp system rollout—from ₱223.75 million in 2023 to ₱942 million in one year.
Lumagui laments that illicit vape sellers are hiding their products in residential homes. He encourages the public to report any suspicious activity -whether selling or storing – to the BIR. “Illicit vape criminals have no place in our neighborhoods.”
