Key points:

• The Bureau of Internal Revenue (BIR) collected ₱942 million in excise taxes on 130 million milliliters of vape products within six months of implementing the vape stamp system, a significant increase from ₱224 million on 11.2 million milliliters in 2023.
• Last month, the BIR filed tax evasion charges totaling ₱8.68 billion against importers and distributors of illicit vape brands Flava, Denkat, and Flare.
• The Bureau of Customs, with President Ferdinand Marcos Jr.’s oversight, destroyed ₱3.26 billion worth of smuggled vape products in April 2025, highlighting the government’s commitment to combating illicit trade.

The Philippine government’s intensified campaign against illicit vape trade has reportedly yielded substantial results, with the Bureau of Internal Revenue (BIR) citing a significant increase in excise tax collections and the filing of major tax evasion cases.

Since the implementation of the vape stamp system in June 2024, the BIR has collected ₱942 million (US$16.2 million)in excise taxes on 130 million milliliters of vape products over six months. This marks a substantial rise from the ₱224 million collected on 11.2 million milliliters for the entire year of 2023 .

“There will be no letup in our fight against illicit trade,” said BIR Commissioner Romeo Lumagui Jr. “Just recently, we filed criminal cases against importers of vape products. This shows that the campaign against the illicit trade in vape products is continuous, and we will not stop until we address this issue.”

In April 2025, the BIR filed tax evasion charges amounting to ₱8.68 billion against large-scale illicit vape businesses associated with the brands Flava, Denkat, and Flare. The charges include unlawful possession of vape products without payment of excise tax and failure to file excise tax returns, all in violation of the National Internal Revenue Code of 1997 .

Commissioner Lumagui emphasized that the BIR’s enforcement efforts extend beyond distributors and importers. “All those involved in the trade of untaxed vape products, including sellers, endorsers, and influencers, could face tax evasion charges under the tax code,” he stated .

Complementing the BIR’s efforts, the Bureau of Customs (BOC) destroyed ₱3.26 billion worth of seized vape products in April 2025. President Ferdinand Marcos Jr. led the condemnation of these smuggled goods, highlighting the health risks posed by unregulated vape products.

“Our primary concern is the health risks posed by these illicit vapes,” Marcos said. “Some of the smuggled vape liquids we examined were found to contain toxic substances.”

The BIR and BOC’s coordinated actions reflect a broader strategy to combat illicit trade and ensure compliance with tax laws. The introduction of the vape stamp system has been instrumental in tracking and taxing vape products effectively, according to the BIR.

Under Revenue Memorandum Circular 59-2024, effective June 1, 2024, all vape products are required to have tax stamps affixed before distribution .

As the government continues its crackdown on illicit vape trade, authorities urge all stakeholders to comply with existing regulations to avoid legal consequences. The BIR has made available a list of registered vape brands on its website for reference.