Manila: The Bureau of Internal Revenue (BIR) flagged 25 out of 65 gasoline stations during the first three days of its large-scale fuel marking enforcement drive across Luzon. In a statement Thursday, BIR stated it launched a multi-week fuel marking operation on Aug. 17 to detect possible tax non-compliance by field-testing gasoline, diesel, and kerosene.

According to Philippines News Agency, petroleum products that fail field tests are subjected to immediate inventory, sealing or padlocking, and confirmatory testing. BIR Commissioner Charlito Martin Mendoza explained that the agency is utilizing fuel marking and other enforcement tools to quickly address revenue leakages and protect compliant businesses from unfair competition in the petroleum sector.

Mendoza emphasized that this is not a one-time operation. The BIR plans to continue using fuel marking and other enforcement tools in areas with a high risk of tax leakage and will expand these operations to other parts of the country. Under the fuel marking enforcement drive, if non-compliance is confirmed, the BIR will assess and collect all applicable taxes and penalties under existing laws and regulations.

Taxpayers have the option to request corrective fuel marking and the lifting of seals once they settle their liabilities and meet all compliance requirements. The fuel marking operations are further supported by other BIR enforcement and compliance activities, including inventory stock-taking, registration and invoice verification, and Tax Compliance Verification Drives.