The Bureau of Internal Revenue (BIR) confiscated 18,811 illicit vape products and counterfeit tax stamps in a raid conducted on 30 May in Guiguinto, Bulacan, uncovering an online-enabled illegal operation disguised as a legitimate business.

BIR Commissioner Romeo Lumagui Jr. led the enforcement action in coordination with the National Bureau of Investigation’s Organized and Transnational Crimes Division. The raid followed surveillance of Facebook-based sales, which formed the basis for a mission order and a court-issued search warrant.

“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,” Lumagui said. “The long arms of the law extend into the cyber realm — and we will find you."

Authorities raided a vape lounge and a makeshift warehouse in a residential house, both allegedly operating as fronts for illegal vape distribution. They recovered 4,789 salt nicotine units and 14,022 conventional vape items, along with counterfeit excise stamps and unregistered disposable vape devices.

"To put the scale of the haul into perspective — kung conservative po tayo — 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 added.

He emphasized the public health risk posed by the operation.

“These aren’t just tax violations — they are a threat 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," he said.

Several individuals, including online sales agents and other employees found onsite, are now facing criminal charges along with the establishment’s proprietor. Charges will include multiple violations of the National Internal Revenue Code, such as:

• Section 263: Unlawful Possession of Articles Subject to Excise Tax Without Payment

• Section 263-A: Sale of Vapor Products Below Combined Excise and VAT

• Section 264: Failure to Issue Required Receipts

• Section 265: Offenses Related to Counterfeit Stamps

• Section 254: Attempt to Evade or Defeat Tax

• Section 255: Failure to Provide Accurate Tax Information

They are also being charged under Article 172 of the Revised Penal Code for Falsification of Commercial Documents.

The BIR pegged the total deficiency tax assessment at ₱36.51 million, including surcharges, interest, and penalties. The basic excise tax liability alone is estimated at ₱3.49 million.

The illegal operation reportedly used a “layering” scheme by issuing both registered and unregistered receipts to conceal taxable sales. However, the BIR’s digital strip stamps introduced in 2024 have made it easier to identify fake and untaxed vape products.

Since implementing the digital verification system, vape excise collections have surged. From just ₱223.75 million in 2023, collections jumped to ₱942 million in 2024, driven by the taxation of 130 million milliliters of vape liquids.

"Illicit vape sellers are hiding their products in residential houses,” lamented Lumagui. “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.”