With illicit vape products making up as much as 80 percent of the market, lawmakers and tax officials are calling for a “one government approach” to combat the spread of unregulated and untaxed vapor products in the Philippines.
At a Senate Ways and Means Committee hearing last Monday, the Bureau of Internal Revenue (BIR) revealed the extent of unregulated vape sales and law enforcement challenges.
According to BIR Large Taxpayers Service Assistant Commissioner Atty. Jethro Sabariaga, this May Commissioner Romeo Lumagui Jr. “launched another nationwide activity because of the intelligence reports that there’s an uptick, upswing on activities, particularly on online activities, and on vape shops, on these illicit products.”
“This is a war for the welfare of Filipino teens. A war for the future of our country.”
Considering this, the BIR official proposed the adoption of “a one-government approach. Even though this responsibility should be shared by DTI (Department of Trade and Industry), Department of Health, the police power arm of the government in securing the health and safety of our public, the local government units, and the PNP.”
“Kaya nga ho… ang upcoming recommendation namin is for an illicit trade task force… the creation of a body that will consolidate the efforts and channel the energy of this country into curbing this illicit trade.”
Senator Sherwin Gatchalian, who chaired the hearing, said that aside from a “one government approach,” government agencies needed to step up efforts to curb the sale of illicit vape products.
“We want action. We want action already from the DTI and from the BIR––and most importantly the DTI––because the law assigned the DTI as the lead agency to regulate vaping products,” said the senator.
Vape industry representatives present at the hearing revealed that as much as 70 to 80 percent of products currently in the market are illegal.
Gatchalian lamented that illegal vape products are now reaching adolescents and pose significant dangers. Holding up a bottle of vape juice purchased the day before the hearing, he pointed out that bottle did not have labels.
According to Gatchalian, “walang selyo ‘to so meaning they’re not paying taxes, they’re not registered with the DTI, and paying taxes because there is no seal. And yet, they’re now filtering to the hands of our adolescents. That is now the problem.”
“More enforcement will be forthcoming, and the BIR will adapt and go toe to toe against these criminals.”
He warned that “hindi natin alam ang chemical content nito eh. They’re not registered. We don’t know the chemical content. Hindi pa nagbabayad ng buwis… this is now a dangerous stage in our country wherein our young are smoking chemicals that we don’t even know.”
During the hearing, Sabariaga revealed how sellers have evaded detection. “Ang mga nakadisplay doon ay mga legit products, ‘yong may mga stamp, mga registered products, but when you look at the Facebook pages of these vape shops… madidiskubre natin na may mga binebenta sila… ng mga illicit vape products nila.”
“And usually tama po ‘yon, nasa kabahayan. Recently, the BIR seized illicit vape products, unregistered, unpaid taxes, in a night raid sa isang bahay being used as warehouse. So, ganoon na po kalala at ganoon na ka-pervasive ang activity na ito.”
Following the hearing, Commisioner Lumagui said that while industry players harp on the punitive nature of over regulation and heavier taxes on legitimate products, “the people have a right to expect that their government will clamp down heavily on the bad actors of this business, rather than treat everyone lightly.”
“More enforcement will be forthcoming, and the BIR will adapt and go toe to toe against these criminals. This is a war for the welfare of Filipino teens. A war for the future of our country.”
