BIR raids vape festival; 5,385 illicit vape products seized

The Bureau of Internal Revenue (BIR) on Tuesday said it raided the Philippine Vape Festival last August 18, during which it seized thousands of illicit vape products.

In a news release, the BIR said 5,385 illicit vape products were seized during the raid, which was conducted based on surveillance by the agency’s Illicit  Trade Task Force (ITTF) during the festival's opening day.

The taxman said the ITTF discovered that numerous vape products displayed and offered for sale during the festival had no corresponding internal revenue stamps.

The raid, in cooperation with the Las Piñas police, proceeded after confirmation that the vape products were illicit.

The BIR said the festival was supposed to be a “compliance summit” to discuss compliance with "current regulation and policy changes."

The tax collection agency, however, said that its operatives covertly surveilled the festival upon orders of BIR  Commissioner Romeo Lumagui Jr.

The BIR-ITTF’s covert surveillance found that a lot of vape products displayed, distributed, and being sold at the festival had no internal revenue stamps- the conclusive mark of tax compliance.

The taxman said a total of three stalls and three delivery vans were found to have illicit vape products.

The alleged presence of these illicit products violated the National Internal  Revenue Code's:

• Section 144 - Tobacco Products, Heated  Tobacco Products, and Vapor Products,
• Section 106 - Value-Added Tax on Sale of Goods or Properties,
• Section 146 - Inspection Fee,
• Section 248B - Civil Penalties,
• Section 249B - Interest, and
• Section 263 - Unlawful  Possession or Removal of Articles Subject to Excise Tax Without Payment.

"This is also a warning to all the celebrities, influencers, and endorsers of illicit vape products. Do not associate yourselves with these individuals or companies, including those involved in organizing and setting up the Philippine Vape Festival 2024. By doing so, you are complicit in helping these illicit vape traders sell illegal products,"  said Lumagui.

GMA News Online had sought comment from the Philippine Vape Festival's organizers through the festival's Facebook account, but they have yet to respond as of posting time. — DVM, GMA Integrated News