House to probe e-cigarette maker for tax evasion

Vaping products are bagged and confiscated during a spot raid of a tobacco store by members of New York Sheriff’s Joint Compliance Task Force (SJCTF), Wednesday September 27, 2023, in New York. Communities across the U.S. are confronting a new vaping problem: How to get rid of millions of disposable e-cigarettes that are considered hazardous waste? The devices contain nicotine, lithium, and other materials that cannot be reused or recycled. (AP Photo/Bebeto Matthews)

QUEZON CITY, Philippines — A House panel will investigate an e-cigarette maker for tax evasion and tax fraud after authorities raided a warehouse with P1.43 billion worth of vape products last month.

House ways and means panel will probe FLAVA, an e-cigarette label, after 1.4 million pieces of disposable vapes bearing its name were found in a warehouse in Valenzuela city on October 27.

Committee chair and Albay Representative Joey Salceda said they will look into the “possibly massive” tax evasion and tax fraud in the illegally imported e-cigarettes.”

Salceda estimated the unpaid excise taxes to reach as high as P728 million for the P1.43 billion e-cigarettes.

READ: Vaping problem: How to safely get rid of disposable e-cigarettes?

READ: Customs seize illegally imported e-cigarettes in Valenzuela

He warned persons found liable for evading excise taxes will pay a penalty of 10 times the amount.