The Bureau of Internal Revenue (BIR), under the leadership of Commissioner Romeo D. Lumagui, Jr., has escalated its crackdown on the illicit vape trade by filing criminal charges with the Department of Justice (DOJ) against businesses operating under the brand names Flava, Denkat, and Flare. The charges, filed on the morning of April 29, 2025, allege tax evasion amounting to a staggering Php8.7 billion.
Commissioner Lumagui issued a strong statement, saying, “Today marks a significant step in our efforts to combat the large-scale illicit vape industry. These businesses have flagrantly disregarded our tax laws by failing to remit Php8.7 billion in taxes. We have consistently warned those intending to operate in the vape sector: register with the BIR and pay your dues. This action demonstrates the consequences of ignoring these regulations.”
The criminal charges encompass several violations of the National Internal Revenue Code of 1997, as amended, including unlawful possession of vape products without the required excise tax payment (Section 263), tax evasion (Section 254), and failure to file excise tax returns (Section 255). The BIR’s filing also seeks the recovery of the unpaid deficiency excise taxes and penalties, which total nearly Php9 billion.
Commissioner Lumagui emphasized the BIR’s unwavering commitment to eradicating the illicit vape trade: “Expect more criminal cases to follow against those involved in selling illicit vape products. Regardless of the size of your operation, if you deal in illegal vapes, you will face imprisonment. Furthermore, we will hold accountable and prosecute celebrities and influencers found to be conspiring with these illicit traders. The era of illicit vape ends now.”
This legal action against Flava, Denkat, and Flare is part of Commissioner Lumagui’s intensified campaign against the sale of illegal vape products in the Philippines. In addition to ongoing raids, the Commissioner has repeatedly urged the public to report any establishments selling illicit vapes.
Furthermore, in light of the widespread availability of these illegal products, CIR Lumagui cautioned all promoters and advertisers of vape products to exercise responsibility by promoting only legitimate, tax-compliant brands. He warned that those who fail to do so will also face appropriate legal repercussions.
