The Philippine Bureau of Internal Revenue (BIR) on Tuesday filed criminal charges against a Binondo trader who allegedly smuggled vaping products into the country for tax evasion and related charges ahead of the Department of Justice (DOJ).

BIR Commissioner Romeo Lumagui personally led the tax assessment of Wei Feng Bao, Christina Poa, Sandoval Severino Briones, Jimmy Go and Bibiano Lesaca up to 1.2 billion Philippine pesos (1 Philippine peso = 0.1270 yuan).

It was the first tax evasion case brought under President Ferdinand R. Marcos Jr., and Lumagui warned that the government would crack down on traders who did not pay the correct taxes.

“The allegations stem from the raids we conducted last month on the illegal possession of vaping products that were not properly taxed,” Lu Magui told the media.

The five are charged with violating Republic Act 111346, or the Act Increasing Excise Tax on Tobacco Products, which imposes excise taxes on heated tobacco products and vapor products and increases penalties for violating excise tax provisions; and the state's Internal Revenue Act of 1997.

“I hope this is another warning to those who think they can continue to evade taxes. We are hands-on and focused on our work, and we take that very seriously,” Lumagui said.

Authorities seized between 50,000 and 100,000 e-cigarettes, 899 boxes of untaxed taxable items consisting of 175,050 pods, and 61,400 bottles of sauces with an estimated value of P15 million to P30 million.

When using an e-cigarette, the liquid is heated and produces an aerosol that the user inhales.

The BIR earlier estimated that the government loses about PHP 1.4 billion in annual revenue due to vaping smuggling.

“The popularity and widespread use of e-cigarettes as a smoking alternative has lured many unscrupulous merchants and traders to illegally import and sell them. As a word of advice, they should go through appropriate and legal channels and ensure that they are fully compliant with regulatory requirements. Otherwise, we will Confiscate their illegal products and file corresponding criminal charges against them,” he said.

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