Manila: The Bureau of Internal Revenue (BIR) has initiated legal proceedings against 75 individuals and businesses implicated in the illegal trade of vaporized nicotine and non-nicotine products. These entities are accused of evading taxes amounting to PHP711.3 million, as detailed in the criminal complaints filed with the Department of Justice.
According to Philippines News Agency, BIR Commissioner Romeo Lumagui Jr. highlighted that this action represents a nationwide effort, with revenue regions from Luzon, Visayas, and Mindanao filing their respective cases. The BIR has previously targeted significant players in the illicit vape market, including brands such as Flava, Denkat, Flare, and Tap Fog, and continues to address ongoing non-compliance by retailers.
Investigations have revealed widespread violations, with untaxed vape products being sold without the necessary internal revenue stamps and BIR registration. Consequently, enforcement actions have led to the seizure of large quantities of these illicit products.
The legal complaints cite multiple breaches of the Tax Code, particularly tax evasion, illegal possession or removal of taxable goods without payment, and failure to submit excise tax returns. The charges are directed at business owners and those in possession of unregistered vape products.
In a previous case from February 2024, the courts responded to BIR's actions by issuing arrest warrants against Tap Fog and its associates, who faced a tax liability of PHP1.2 billion. Further, in April 2025, the BIR filed additional tax evasion cases valued at PHP8.7 billion against several large-scale illicit vape brands, including Flava, Denkat, and Flare.
BIR Commissioner Lumagui emphasized the importance of fair business practices in the Philippines, warning against selling illegal vapes, using ghost receipts, and operating large online businesses without proper tax payments. He urged non-compliant businesses to cease operations to avoid future legal actions.