Key Points
- The BIR said enforcement teams are on high alert as stronger holiday demand increases the risk of illicit vape and tobacco products entering the market.
- Regional and enforcement offices have been directed to intensify monitoring of suspected production sites, warehouses, distribution channels and retail outlets.
- The BIR destroyed 240,550 illicit vape products on August 24, with estimated tax liabilities of about PHP1.53 billion.
- A nationwide compliance drive in July inspected 3,590 establishments and seized 8,634 vape products and 22,251 packs of cigarettes.
2Firsts
September 17, 2026
According to the Philippine News Agency on September 16, 2026, the Philippines’ Bureau of Internal Revenue is stepping up enforcement against illicit vape and tobacco products ahead of the Christmas shopping season, directing regional and enforcement offices to strengthen monitoring across production, warehousing, distribution and retail channels.
BIR Commissioner Charlito Martin Mendoza said intelligence and market information indicated a higher risk of illicit vape and tobacco products entering the market as holiday demand increases. Enforcement teams are now on high alert, according to the agency.
The BIR has instructed its regional and enforcement offices to intensify monitoring of suspected production sites, warehouses, distribution channels and retail outlets, and to coordinate enforcement operations where necessary.
Enforcement Expands Across the Supply Chain
The latest directive extends monitoring beyond retail outlets to other parts of the supply chain.
The BIR also called on legitimate industry participants, retailers and the public to provide information on suspected illegal manufacturing, storage, distribution or sale of vape and tobacco products.
The agency has conducted several nationwide tax-compliance operations targeting tobacco and vapor products this year.
On July 20, BIR personnel across all 22 revenue regions inspected around 3,590 establishments involved in the sale and distribution of cigarettes, vapor products and heated tobacco products. The operation resulted in 1,793 apprehensions for various tax-compliance violations.
Authorities seized 8,634 vape products and 22,251 packs of cigarettes, with estimated tax liabilities of about PHP16.54 million. Violations included failure to register with the BIR, failure to issue invoices or maintain required books, and possession of excisable products without required tax stamps.
BIR Destroys More Than 240,000 Illicit Vape Products
On August 24, the BIR destroyed 240,550 previously seized illicit vape products at a waste-management facility in Porac, Pampanga. The agency estimated the associated tax liability at about PHP1.53 billion.
The BIR said the destruction was intended to permanently remove illicit products from the market while pursuing those involved in their illegal manufacture, importation, distribution and sale.
The BIR’s Manila revenue region has also expanded vape enforcement from individual retail outlets to warehouses. The agency described an operation involving Tap Fog Philippines as its largest single illicit-vape enforcement action to date, with some of the products from that operation later included in the August destruction.
In early September, the BIR again identified illicit vapes as one of the focus areas in its consolidated nationwide enforcement results and said follow-up inspections would continue.
The latest directive expands that enforcement focus across production, warehousing, distribution and retail as the Philippines enters its year-end shopping season.
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Cover Image: Bureau of Internal Revenue, Philippines
