Manila: The Bureau of Internal Revenue (BIR) is developing a digital track-and-trace system that will allow consumers and regulators to verify the authenticity of vape products and other excisable goods using quick-response (QR) codes readable by any smartphone. The initiative is part of the agency's efforts to curb the proliferation of smuggled and unregulated vape products, which continue to evade taxes and pose risks to public health.

According to Philippines News Agency, BIR Commissioner Romeo Lumagui Jr. stated that the new system is meant to assist both government enforcement efforts and law-abiding businesses. He noted that even some businessmen, who wish to comply with regulations, have been caught unaware with counterfeit stamps, buying from wholesalers who are also unaware of the products' authenticity. The BIR chief warned that billions of pesos in revenue are being lost due to illegal vape operations, with enforcement efforts becoming challenging due to the tactics retailers employ to conceal unregistered products from inspectors.

Lumagui acknowledged that enforcement is further challenged by the rapid shift from cigarettes to vape products, particularly among the youth. He estimated that stopping the sale of illicit vape products could help the government recover significant losses. Since 2022, the BIR has not collected revenue from the vape industry as many retailers are unaware that vape products are subject to excise tax. He expressed that addressing the illegal vape trade could substantially help meet revenue targets.

The BIR is intensifying on-the-ground enforcement and is also encouraging citizen participation by opening reporting channels and providing incentives for reporting illicit trade under the BIR's existing reward system. Lumagui reiterated the agency's commitment to continuous operations and urged compliance, emphasizing that compliance benefits both the country and businesses.