Authorities in the Philippines have successfully dismantled an extensive online illicit vape operation in Bulacan, resulting in the seizure of over 18,000 vape products and counterfeit tax stamps.

This operation was a collaborative endeavor between the Bureau of Internal Revenue (BIR) and the National Bureau of Investigation (NBI) and took place on May 30.

BIR Commissioner Romeo Lumagui Jr. reported that this operation followed detailed surveillance of online sales conducted predominantly through Facebook.

The reconnaissance was essential for the issuance of a Mission Order and subsequent search warrant.

During the raid, law enforcement targeted two locations in Guiguinto, Bulacan: a vape lounge disguised as a legitimate business and a makeshift warehouse situated within a residential area.

Among the confiscated items were 4,789 salt nicotine units and 14,022 conventional vape products, alongside fake internal revenue excise stamps and counterfeit disposable vapes.

Lumagui underscored the scale of the seizure, noting that if one disposable vape lasts an average user one week, the 18,811 seized units could potentially supply over 4,700 underage users for a month if each vapes daily.

He highlighted the public health implications of this operation, emphasizing the risks posed to minors.

Several individuals connected to the operation, including online sales agents and the proprietor, are facing criminal charges.

These charges encompass multiple violations of the National Internal Revenue Code (NIRC), including unlawful possession of excise tax articles, selling vapor products below the combined tax, failure to issue required receipts, offenses related to counterfeit stamps, tax evasion, and failure to provide accurate tax information.

Additional charges under Article 172 of the Revised Penal Code for falsifying commercial documents are being prepared.

The BIR has estimated the total deficiency tax assessment from this operation at approximately ₱36.51 million, inclusive of surcharges, interest, and penalties.

The basic excise tax liability from the confiscated products alone is estimated at ₱3.49 million.

The business employed a sophisticated illegal layering scheme, using a mix of both registered and unregistered receipts to obscure illegal sales.

Lumagui reported that the introduction of new strip stamps has enhanced the ability of agents to identify fake and untaxed products effectively.

He also noted a substantial increase in vape excise tax collections following the planned rollout of a digital stamp verification system in June 2024. In 2023, the tax reported on 11.2 million milliliters of vape liquids amounted to ₱223.75 million, with collections rising dramatically post-implementation to ₱942 million from 130 million milliliters within just one year.

Lumagui called for public vigilance, urging community members to report suspected illicit vape operations in residential neighborhoods, indicating that such activities pose a significant threat to public health and safety.