The recent destruction of P3.26 billion worth of smuggled vape products marked another milestone in the Philippine government’s intensified campaign against illicit trade, led by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC).

BIR Commissioner Romeo Lumagui Jr. said the agency has been strengthening its enforcement operations targeting both established and emerging sources of tax evasion, particularly in the vape and tobacco sectors.

Lumagui urged the public to avoid patronizing illicit tobacco products and to report suspected cases of smuggling or tax evasion to the BIR.

Asked which industries pose the biggest challenge, Lumagui pointed to vape products. “Right now, probably because it’s a relatively new industry,” he explained.

He emphasized, however, that cigarette smuggling remains widespread due to the enormous profits involved. “There are still many illegal manufacturing sites and smuggling operations for cigarettes. That’s why we are closely monitoring these and going after those selling illegal vape and cigarette products,” Lumagui said.

He explained that the illicit cigarette trade is driven by profit motives. “They want to earn more by avoiding taxes — and that comes at the expense of our fellow citizens.”

“The law has good intentions. A portion of the taxes collected from these products goes to healthcare services for the public,” he added.

President Ferdinand Marcos Jr., who attended the vape destruction event at South Harbor, praised the BIR for its aggressive enforcement efforts. He highlighted the agency’s recent warehouse raids, which complement the broader government push against smuggling and illegal trade.

“I think the BIR is also working hard to do the same thing. They’ve been conducting seizures, focusing on warehouses,” the President noted.

The government’s campaign addresses not only lost tax revenue but also the public health risks posed by unregulated and potentially hazardous products entering the market without proper permits or inspections.

Legitimate businesses have expressed strong support for the anti-smuggling drive, citing the unfair competition created by illegal traders.

Jesus Arranza, chairman of the Federation of Philippine Industries, warned that smuggling undermines local manufacturers by flooding the market with untaxed, undervalued, and substandard imported goods.

Industry leaders argue that such activities damage the country’s regulatory environment and place law-abiding enterprises at a disadvantage.

Lumagui urged the public to avoid patronizing illicit tobacco products and to report suspected cases of smuggling or tax evasion to the BIR. He reiterated that the agency will continue to pursue violators through both enforcement and legal action.

The BIR has consistently conducted operations to curb illicit trade, including the destruction of counterfeit and untaxed cigarettes and the filing of criminal complaints against violators.