BIR SEIZES 11,309 ILLICIT VAPES; NETS OVER ₱33M IN UNPAID TAXES IN 5-REGION CRACKDOWN

Wazzup Pilipinas!? 

The Bureau of Internal Revenue (BIR), in coordination with the Department of Trade and Industry (DTI) and the Philippine National Police (PNP), seized 11,309 illicit vapor products and uncovered over ₱33 million in estimated tax liabilities during simultaneous enforcement operations conducted on March 12 across Metro Manila, Bulacan, Cavite, Batangas, and Laguna against traders selling untaxed vape products.

The operations formed part of a coordinated crackdown covering five regions and targeting establishments engaged in the illegal sale and distribution of untaxed vapor products.

Illicit trade in vapor products deprives the government of much-needed revenue and exposes consumers to unregulated products that fail to comply with tax and regulatory requirements.

The operations were carried out following BIR Commissioner Charlito Martin R. Mendoza’s directive to intensify monitoring and enforcement against establishments suspected of trading illicit vapor products.

Multiple BIR revenue regions were mobilized to conduct synchronized inspections and tax compliance verification drives in areas identified through intelligence gathering and verification. Participating offices included Revenue Region No. 8B – South NCR, Revenue Region No. 5 – CAMANAVA and Bulacan, Revenue Region No. 9A – CaBaMiRo, and Revenue Region No. 9B – LaQueMar.

In Muntinlupa City and Parañaque City, enforcement teams from Revenue Region No. 8B – South NCR discovered five establishments selling illicit vapor products, later confirmed to be operating under different store names but owned by a single proprietor. Authorities confiscated 2,509 vapor products, including nicotine salt pods, disposable vape units, and freebase bottles and pods, corresponding to ₱8,146,702.90 in estimated tax liabilities.

Meanwhile, operatives from Revenue Region No. 5 – CAMANAVA and Bulacan seized 1,191 disposable vape units during enforcement operations in Valenzuela City and Caloocan City, with estimated excise tax liabilities close to ₱3 million. Investigators found that some units carried fake Internal Revenue Stamps, while others had no stamps affixed, indicating that no excise taxes had been paid.

In Cavite and Batangas, enforcement teams from Revenue Region No. 9A – CaBaMiRo inspected 12 commercial establishments, nine of which were found trading unregistered and unstamped vapor products. Authorities confiscated 6,065 vapor products, with estimated tax liabilities of approximately ₱18.2 million.

In San Pedro City, Laguna, enforcement teams from Revenue Region No. 9B – LaQueMar and Revenue District Office No. 057 – West Laguna conducted inspections at establishments identified through intelligence gathering and surveillance. Authorities seized 1,544 vapor products suspected to be illicit and untaxed, corresponding to ₱4,621,027.81 in estimated tax liabilities.

Across the five regions, the coordinated crackdown resulted in the seizure of 11,309 illicit vapor products and the uncovering of more than ₱33 million in unpaid taxes linked to the illegal trade of untaxed vape products.

Commissioner Charlito Martin R. Mendoza said the operations highlight the BIR’s intensified campaign against illicit trade in excisable goods.

“These operations are part of the BIR’s intensified enforcement against the illegal sale and distribution of untaxed vapor products. In line with the directive of President Ferdinand R. Marcos Jr. to strengthen tax compliance and protect government revenues, the Bureau will continue to conduct coordinated enforcement actions against businesses that evade their tax obligations,” Mendoza said.

“Consistent with the policy direction of Finance Secretary Frederick D. Go under the Department of Finance’s Big Bold Reforms to strengthen revenue administration and curb illicit trade, the BIR will further intensify monitoring and enforcement operations to ensure full compliance with tax laws. Those engaged in the illegal sale of untaxed vapor products should expect decisive enforcement action from the Bureau,” he added.

The BIR warned that individuals and establishments found selling illicit vapor products may face seizure of goods, tax assessments, and possible administrative and criminal cases under the National Internal Revenue Code of 1997, as amended, and other applicable laws, rules, and regulations.

The agency also urged business owners, distributors, and retailers to strictly comply with tax laws governing excisable products, including proper registration and the affixture of Internal Revenue Stamps, and encouraged the public to report suspected sale or distribution of untaxed or illicit excisable products to help safeguard government revenues and promote fair competition.

BIR OPENS 2026 STRONG WITH PHP 15.307 BILLION REVENUE GAIN, HITS 100.43% OF JAN–FEB GOAL

Wazzup Pilipinas!? 

The Bureau of Internal Revenue (BIR) registered a strong start to 2026, posting PHP 530.055 billion in net collections from January 1 to February 28, 2026.

This preliminary performance surpassed the Bureau’s internal collection goal of PHP 527.775 billion by PHP 2.280 billion, equivalent to 100.43% of the target, net of tax refunds. It also represents a PHP 15.307 billion increase over the PHP 514.748 billion collected during the same period in 2025.

The Bureau’s early 2026 performance shows a 2.97% year-over-year increase in net collections, reflecting steady improvements from intensified tax administration, stronger enforcement efforts, and ongoing measures to boost taxpayer compliance nationwide.

Despite global economic headwinds, the BIR remains optimistic and firmly committed to sustaining revenue growth and meeting its 2026 goals. The Bureau continues to pursue its mandate through a balanced and people-centered approach—raising the revenues needed to support national development while protecting taxpayers’ rights and strengthening stakeholder trust and confidence.

This performance reaffirms the Bureau’s continuing support for the fiscal stability and inclusive growth agenda of President Ferdinand R. Marcos, Jr. Under the guidance of Finance Secretary Frederick D. Go, the BIR remains steadfast in advancing fiscal discipline, institutional modernization, and responsive public service for the benefit of the Filipino people.

DOF, BIR issue rules granting VAT exemption for natural gas transactions

Wazzup Pilipinas!? 

The Department of Finance, upon the recommendation of the Bureau of Internal Revenue (BIR), has issued new revenue regulations granting value-added tax (VAT) exemption on indigenous natural gas and related power generation, supporting the government’s push to develop the country’s natural gas industry.

The regulations implement fiscal incentives under Republic Act No. 12120 or the Philippine Natural Gas Industry Development Act, which promotes natural gas as a safe, efficient, and cost-effective energy source, while providing clear guidelines on the availment of VAT exemptions.

Under the rules, VAT exemption applies to the sale and purchase of indigenous natural gas, aggregated gas, and electricity generated using such gas, including ancillary services tied to power generation.

The exemption for aggregated gas, however, applies only to the portion attributable to indigenous natural gas, ensuring that incentives are properly targeted.

Covered transactions include those undertaken by suppliers, aggregators, resellers, and generation facilities, as well as participants in the Philippine downstream natural gas industry, subject to certification by the Department of Energy (DOE).

The BIR said the issuance provides clear guidelines on the availment of VAT incentives, including documentation and certification requirements to verify compliance.

To qualify, participants must present an endorsement from the DOE’s Oil Industry Management Bureau, along with certification indicating the volume and percentage of indigenous natural gas sold during the taxable quarter.

Generation facilities must obtain certification from DOE’s Electric Power Industry Management Bureau, confirming their use of indigenous natural gas and the amount of electricity produced from such gas.

Participants and generation facilities must attach their DOE permit to the endorsement documents.

The BIR regulations also include safeguards to prevent misuse of incentives.

Under the rules, availment of fiscal incentives under Title XIII of the Tax Code disqualifies entities from availing of similar incentives under RA 12120 and other special laws, reinforcing proper compliance and accountability.

BIR Commissioner Charlito Martin R. Mendoza highlighted the importance of natural gas to the country’s energy strategy and reaffirmed the Bureau’s commitment to sound tax administration.

“The BIR acknowledges the potential of natural gas to lower energy costs and help achieve national energy security. These regulations fully implement the mandates of RA No. 12120 by providing clear guidance on the availment of incentives that will support investment in the Philippine Natural Gas Industry,” said Mendoza.

“By establishing transparent and well-defined processes for VAT incentives on indigenous natural gas, we strengthen both the competitiveness of cleaner energy sources and the integrity of our tax system,” he added.

In line with the directive of President Ferdinand R. Marcos Jr. and the policy direction of Finance Secretary Frederick D. Go, the BIR continues to support priority industries while strengthening revenue administration.

The regulations will take effect 15 days after publication in the Official Gazette or on the BIR website, whichever comes first.

For more details, please visit the BIR’s website:

https://bir-cdn.bir.gov.ph/BIR/pdf/RR%20No.%202-2026.pdf

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