Philippine Tax Bureau Seizes $270,000 Worth of Illegal E-Cigarettes Sold Online at Cut-Rate Prices

Key Points:

1.The Bureau of Internal Revenue (BIR) raided a residence in the Tondo district of Manila, Philippines, and seized illegal e-cigarette products and accessories worth approximately 15 million pesos (270,000 US dollars).

2.The director of BIR stated that these products do not bear the required tax stamps, violating the 1997 National Internal Revenue Code, and are considered to be illegally circulated.

3.Preliminary investigations have shown that these e-cigarette products are being sold at low prices through online platforms without undergoing quality inspections, posing potential health risks.

4.Currently, the tax authorities are conducting an investigation into the individuals involved and plan to bring charges of illegal business operations and other offenses.

According to a recent report by the Philippine media outlet ABS-CBN, the Bureau of Internal Revenue (BIR) in the Tondo district of Manila uncovered approximately 15 million pesos ($270,000) worth of illegal e-cigarette products and accessories inside a residential property.

Bureau of Internal Revenue (BIR) Director Romeo Lumagui stated that the operation was conducted based on intelligence received, revealing that the residence was being used as a warehouse for illegal e-cigarette products. According to the 1997 National Internal Revenue Code, these e-cigarette products did not bear the BIR-issued excise tax stamp, making them illegal. Lumagui noted that the products seized in the operation were not legally registered in the market and did not have any valid stamps.

Preliminary investigations have shown that these illegal e-cigarette products are being sold online at low prices. Lumaji pointed out that although the prices are cheap, the quality is not guaranteed, posing health risks and potential harm to consumers. He emphasized that the actions taken demonstrate that even illegal sales of e-cigarettes on online platforms are not safe, and authorities have proven they can crack down on these practices.

The BIR is urging the public to actively report illegal online sales of e-cigarettes. Lumagui explained that the key to identifying legal products lies in the tax seal and having a revenue stamp; furthermore, e-cigarette devices should bear the DTI's PS mark, otherwise they are considered illegal.

The disposable e-cigarettes and pods seized will be properly disposed of by the Bureau of Internal Revenue (BIR), while illegal accessories will be confiscated by the Department of Trade and Industry (DTI) enforcement officers. BIR is still investigating the owners of these products and plans to file charges against them for operating illegally and possessing taxable products unlawfully.