The recent destruction of ₱3.26 billion worth of smuggled vape products marked another milestone in the government’s intensified campaign against illicit trade—an effort being led on multiple fronts by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).
In a recent interview, BIR Commissioner Romeo Lumagui Jr. said the agency has been doubling down on enforcement against both emerging and long-standing sources of tax evasion, particularly in the vape and tobacco industries.
Asked what industries have been challenging to police, Lumagui cited vape products “sa ngayon dahil siguro panibagong industriya.”
Legitimate businesses have expressed strong support for the government’s campaign against illicit trade, highlighting the unfair competition posed by smugglers and illegal traders.
He stressed, however, that cigarette smuggling continues to be rampant given the billions in profits involved.
“Marami pang illegal na mga pagawaan at pagpapuslit na mga sigarilyo kaya naman talagang nakatutok po tayo dyan… na habulin ang mga nagbebenta ng [illegal na] vape at sigarilyo,” said the lawyer.
According to Lumagui, the illicit cigarette industry works to evade taxes “dala na rin yan ng gusto nilang masmalaki pa ang kikitain nila… at makapanlamang sa ating mga kababayan.”
“Eh, maganda naman po ang layunin ng batas… dahil parte nang nakokolektahan dyan ay napupunta sa healthcare services ng ating mga kababayan.”
President Ferdinand Marcos Jr., who attended the BOC vape destruction activity in South Harbor, praised the BIR for its ongoing enforcement efforts, noting that the revenue agency had been actively conducting warehouse seizures to complement the government’s anti-illicit trade campaign.
“I think the BIR is also working hard to do the same thing. Nagse-seizure sila, mga warehouse naman ang kanilang naipapasok,” remarked the President.
The BIR’s operations form part of a whole-of-government effort to address not just revenue loss, but also the public health dangers posed by unregulated and often toxic products that enter the market without inspection or permits.
Legitimate businesses have expressed strong support for the government’s campaign against illicit trade, highlighting the unfair competition posed by smugglers and illegal traders. Jesus Arranza, chairman of the Federation of Philippine Industries, noted in 2022 that “smuggling is creating unfair competition for locally produced goods because it erodes the local market [with] cheaper, no value-added tax or undervalued and substandard imported goods displacing the locally produced commodities.”
The BIR recently filed an ₱8.5 billion tax evasion case against Chinese nationals and several corporations following the raid of an illegal cigarette factory and warehouses in San Simon, Pampanga.
Industry leaders assert that such illicit activities undermine the country’s regulatory environment and disadvantage enterprises that diligently comply with tax obligations and legal standards.
Lumagui encouraged the public not to patronize illicit cigarette products and to report suspected smuggling or tax evasion activities directly to the BIR. He affirmed that the bureau will continue to pursue those behind illegal trade through both enforcement and prosecution.
The BIR has been carrying out sustained enforcement operations against illicit trade, including the destruction of counterfeit and untaxed cigarettes and the filing of criminal complaints against violators.
In March 2025, the BIR in Pampanga destroyed approximately 14.3 million packs of illicit cigarettes, seized from various operations, with an estimated tax liability of ₱6.3 billion. The destruction was part of the BIR’s ongoing efforts to remove untaxed products from circulation and deter manufacturers and traders engaged in smuggling and tax evasion.
Most notably, the BIR recently filed an ₱8.5 billion tax evasion case against Chinese nationals and several corporations following the raid of an illegal cigarette factory and warehouses in San Simon, Pampanga.
