The Bureau of Internal Revenue (BIR), led by Commissioner Romeo Lumagui Jr., in coordination with the National Bureau of Investigation (NBI)-Organized and Transnational Crimes Division, has cracked down on an online-enabled illicit vape operation, seizing 18,811 vape products and counterfeit tax stamps in Guiguinto, Bulacan.
The enforcement operation, conducted on May 30, 2025, was the product of surveillance of online sales activities on Facebook, which provided bases for the issuance of a Mission Order and a search warrant, the BIR said.
“We want to send a loud and clear message to those selling illicit vape products: the BIR and NBI will pursue you wherever you hide—online or onsite. The long arms of the law extend into the cyber realm—and we will find you,” Lumagui said.
“We will pull out all the stops. Online or onsite, the BIR will do everything it can to stop illicit trade,” he said.
The team raided two establishments – a vape lounge allegedly operating as a front for underground vape distribution and a makeshift warehouse located in a residential house.
Inside the premises authorities found 4,789 salt nicotine units and 14,022 conventional vape products, along with fake internal revenue excise stamps and counterfeit disposable vapes.
“To put the scale of the haul into perspective—assuming one disposable vape lasts an average user one week, this means that 18,811 seized units could supply over 4,700 underage users for a month, assuming each one vapes daily,” Lumagui said.
“So, close to 5,000 kids could be vaping for an entire month from the products we seized in just one operation. These aren’t just tax violations—they are threats to the health of our children. That’s why we’re going after illicit traders, whether they operate in public markets or hide behind Facebook accounts and residential homes,” said Lumagui.
Several employees found manning the online and onsite operations during the raid—including online sales agents—are set to be charged criminally, alongside the proprietor, for multiple violations of the National Internal Revenue Code (NIRC).
The BIR also estimated the total deficiency tax assessment at P36.51 million, inclusive of surcharges, interest and penalties. The basic excise tax liability from the confiscated products alone was pegged at P3.49 million.
The BIR said the business was employing an illicit layering scheme, issuing a mix of registered and unregistered receipts to mask illegal sales.
Lumagui said the BIR’s implementation of new strip stamps has made it easier for BIR agents to identify fake and untaxed products.
The BIR saw a dramatic increase in vape excise tax collections following the 2024 rollout of its digital stamp verification system. In 2023, only 11.2 million milliliters of vape liquids were taxed, generating P223.75 million.
After the stamp system’s implementation in June 2024, collections surged to P942 million from 130 million milliliters in just one year.
“Illicit vape sellers are hiding their products in residential houses. They are hiding their illicit operations in residential communities. If you suspect that your neighbor is engaged in the selling or warehousing of illicit vape products, immediately report the same to the BIR. Illicit vape criminals have no place in our neighborhoods,” Lumagui said.
