According to the Philippines Bureau of Internal Revenue (BIR) at the Senate Ways and Means Committee hearing, from 2021 to 2024, excise tax revenue has dropped significantly, with cumulative losses of 40 billion Philippine pesos (about 690 million US dollars), of which illegal e-cigarette trade is one of the major loopholes in government tax revenue. In addition, the Philippine Department of Finance also stated that the annual tax revenue lost due to tobacco and e-cigarette smuggling is 52 billion pesos (about 6.4 billion yuan), of which the loss of e-cigarettes may be about 17 billion pesos (about 2.1 billion yuan). These data are far greater than 1.1 million US dollars.
In addition, the BIR also mentioned the specific investigation and punishment. For example, as of the end of October 2024, the BIR had seized 506 illegal e-cigarette retailers and resellers nationwide, and the total tax liability recovered has reached 181.69 million Philippine pesos (about 3.1 million US dollars). This also further proves that the illegal e-cigarette trade has had a serious impact on tax revenue.
Therefore, although the Philippine Internal Revenue Bureau did not directly point out that the illegal e-cigarette trade caused an annual loss of US$1.1 million, judging from the data and investigations it published, the illegal e-cigarette trade did cause huge losses to government tax revenue. In order to combat this illegal trade, the Philippine government has taken a series of measures, including strengthening border control and improving tax compliance enforcement.
VEEHOO has a deep understanding of and strictly abides by all Philippine laws and regulations on e-cigarettes and related products, including specific regulations on taxation, registration, sales, imports, etc. Through legal and compliant business methods, ensure that all business activities of the company are carried out within the legal framework, so as to avoid falling into the dilemma of illegal trade due to ignorance or neglect of regulations.
Strengthen internal compliance management, clarify the compliance responsibilities of various departments and employees, and regularly train employees on laws and regulations. At the same time, strengthen the management of the supply chain to ensure that suppliers and partners also comply with relevant laws and regulations, so as to jointly maintain a legal and compliant market order.
VEEHOO actively responds to the call of government departments and cooperates in relevant regulatory work, such as providing necessary product information, sales records, etc., so that government departments can conduct verification and supervision. At the same time, strengthen communication and cooperation with government departments, jointly combat illegal e-cigarette trade, and maintain a fair competition environment in the market.
Finally, strengthen market monitoring and risk warning. VEEHOO pays close attention to market trends and risk factors, and promptly detects and responds to possible illegal trade practices. Establish a risk warning mechanism to provide early warning and prevention of possible compliance risks to ensure the steady development of the company’s business. At the same time, by strengthening brand building, improving product quality and service levels, VEEHOO’s brand image and market competitiveness in the Philippine market will be enhanced, and consumers’ trust and support will be won through legal and compliant business operations.
Tags: “Illegal e-cigarette trade, strengthen border control, improve tax compliance enforcement, strictly abide by Philippine laws and regulations, veehoo vape