The Bureau of Internal Revenue (BIR) is developing a digital track-and-trace system that will allow consumers and regulators to verify the authenticity of vape products and other excisable goods using quick-response (QR) codes readable by any smartphone.
The initiative is part of the agency’s efforts to curb the proliferation of smuggled and unregulated vape products, which continue to evade taxes and pose risks to public health.
In a news release on Friday, BIR Commissioner Romeo Lumagui Jr. said the new system is meant to assist both government enforcement efforts and law-abiding businesses.
“Even businessmen gusto sanang mag-comply, kasi may nahuhuli kaming ganiyan, na sasabihin nilang sir hindi naman namin alam na peke itong mga stamps (they also want to comply, but there were times when we apprehended someone who says ‘sir, we did not know that the stamps are fake). We get from these wholesalers [who do not know] these products are counterfeit,” he said.
The BIR chief warned that billions of pesos in revenue are being lost due to illegal vape operations, but enforcement efforts have become challenging due to the tactics retailers utilize to hide unregistered products from inspectors.
Lumagui acknowledged that enforcement is further challenged by the rapid shift from cigarettes to vape products, particularly among the youth.
He estimated that stopping the sale of illicit vape products could help the government recover significant losses.
“Vape is a relatively new industry. From 2022 onwards, we did not have any collection on vape… a lot of vape retailers really don’t know that it’s subject to excise tax,” he added.
“It could help us substantially to meet our target if we address the illegal vape products.”
Lumagui said the BIR is not only intensifying on-the-ground enforcement but is also encouraging citizen participation by opening reporting channels and providing incentives to those who report illicit trade under the BIR’s existing reward system.
“Hindi namin ito titigilan. Patuloy ang gagawin naming operations. Kaya sana mag-comply na lang kayo dahil mas maganda mag-comply, makakatulong kayo sa bansa, makakanegosyo kayo nang tahimik (There will be no letup. There will be continuous operations. We encourage everyone to just comply because if you comply, you are helping the country and you could do business in peace),” he said.*PNA
