BIR collects over P4B from ghost receipts, targets illicit vape trade

The Bureau of Internal Revenue (BIR) has collected over P4 billion from issuers of ghost receipts in 2024, with ongoing assessments expected to double the collections to at least P8 billion.

Ghost receipts are issued by non-existent corporations, facilitating tax evasion, particularly for value-added tax, and leading to an estimated loss of up to P370 billion in 2023.

BIR Commissioner Romeo D. Lumagui highlighted challenges in locating violators and noted that the illicit cigarette trade cost up to P40 billion in foregone revenue last year.

The BIR recently filed a criminal case after a raid in Bulacan and Valenzuela, resulting in the seizure of P8.5 billion worth of illegal cigarettes.

On February 24, the BIR will destroy all illicit cigarettes seized nationwide in Porac, Pampanga.

Beyond illicit cigarettes, Lumagui warned that criminal cases will also be filed against those involved in illicit vapes this year.