The Bureau of Internal Revenue (BIR) destroyed 240,550 illicit vape products with an estimated tax liability of P1.539 billion, underscoring the revenue at stake as authorities widen their crackdown from retail outlets to warehouses.
The haul represents taxes that could have gone to government coffers, while also giving illicit traders an advantage over registered manufacturers, importers, and retailers that comply with excise and other tax obligations.
The seized products were destroyed on Aug. 24 at the DIGAMA Waste Management Facility in Porac, Pampanga, according to BIR Revenue Region No. 6-City of Manila and Palawan.
“Enforcement does not end with seizure. We must permanently remove illicit vape products from the market and hold accountable those behind their illegal manufacture, importation, distribution and sale,” BIR Commissioner Charlito Martin Mendoza said.
Regional Director Remir Macatangay said the BIR’s strategy in Manila has evolved from inspecting individual retail outlets to targeting warehouses, enabling authorities to intercept larger inventories before they reach consumers.
“We started with retail stores and expanded to warehouses. This led to our operation against Tap Fog Philippines, the largest single illicit vape enforcement operation conducted by the BIR to date,” Macatangay said.
Some of the products recovered in that operation were included in the latest destruction.
The shift toward warehouses reflects the scale of the illicit vape trade, where larger inventories can move through the supply chain before reaching individual sellers. By intercepting stocks upstream, the BIR aims to disrupt distribution while limiting the potential loss of tax revenue.
Destroying the confiscated products also closes another loophole by ensuring they cannot find their way back into the market.
For compliant businesses, the campaign addresses a competitive concern beyond tax collection. Legitimate operators shoulder the cost of compliance, while illicit traders can undercut them by avoiding taxes and regulatory requirements.
The BIR said its enforcement drive is intended to protect government revenues, safeguard compliant businesses, and hold participants throughout the illicit supply chain accountable.
