Tax evasion charges to the tune of P1.2 billion were filed by the Bureau of Internal Revenue Tuesday before the Department of Justice against five traders allegedly smuggling into the country vape products.

Named by the BIR as respondents in the complaint were Wei Feng Bao, Christina Poa, Sandoval Severino Briones, Jimmy Go and Bibiano Lesaca.

The subjects of the complaints would undergo preliminary investigation for alleged violations of Republic Act 111346, the law on taxes imposed on tobacco, vape and similar products.

Respondents would also be made to answer for allegedly running afoul of the National Internal Revenue Code of 1997.

BIR Commissioner Romeo Lumagui Jr., who led the filing of the complaint, said the government is serious in its crackdown against vape traders who are not paying the correct taxes.

It is the first tax evasion filed under the administration of President Ferdinand "Bongbong" Marcos Jr.

"I hope this serves as yet another warning to those who think that they can continue to evade the payment of their taxes. We are hands-on and focused in our job, and we take this very seriously," Lumagui said.

Those planning to sell vape products and cigarettes were told by the BIR official to register, otherwise, they will be considered to be operating illegally.

Proper channels

The filing of the complaint stemmed from a raid conducted by a specialized team on the onsite and online business operations of the accused in Binondo, Manila last month.

It led to the seizure of approximately 50,000 to 100,000 units of vapes, 899 boxes containing 175,050 pieces of pods and 61,400 pieces of bottled flavored juice.

The estimated value of the items seized ranged from P15 million to P30 million with taxes and penalties reaching around P1.2 billion.

Earlier, the BIR said the government loses around P1.4 billion in revenues annually due to the smuggling of vapes.

"The popularity and wide use of vape as a smoking alternative have tempted many unscrupulous businessmen and traders to import and sell them illegally," Lumangui said.

"As a word of advice, they should go through the proper and lawful channels, and make sure that they are in full regulatory compliance. Otherwise, we will confiscate their illegal products and file the corresponding criminal charges against them," he added.