Metro Manila (CNN Philippines, December 13) — A lawmaker wants to stop the sale, especially in online markets, of the vape brand Flava, over supposed ₱800 million in unpaid taxes.
“Flava and e-cigarettes are still in the market, in spite of all that is being done here,” Cagayan de Oro City 2nd District Rep. Rufus Rodriguez said during the House ways and means committee’s second hearing on the ₱1.428-billion allegedly smuggled Flava vapes or e-cigarettes.
Rodriguez asked the Department of Trade and Industry (DTI) to order online marketplace giant Lazada to stop its vendors from selling Flava vapes, while commending rival Shopee for dropping the brand on its platform.
“Flava continues to sell online. We also urge the DTI to tell Shopee to continue its non-sale online of the flava products,” he said.
\”Let us not allow them to continue selling, especially to minors,\” the lawmaker added.
Flava deems itself as the “number 1 brand” of vape in the Philippines.
Last month’s warehouse raid uncovered illegally imported Flava vapes worth ₱1.43 billion with a dutiable value of around ₱728 million. Rodriguez said the amount is on top of up to ₱70 million in excise taxes plus ₱84 million in 12% value-added tax (VAT).
“You see how the government is shortchanged by about ₱800 million” in import duties, excise tax as well as VAT, he said.
The committee also ordered no-show Flava chief executive officer Gen Vincent Fabro be held in contempt and issued an arrest warrant, along with Hyperbar vape firm owner Reynald Llanto.
Rodriguez also summons to court Shi Lichao, the general manager of a company based in Shenzhen, China, which manufactures the vapes supplied to Denkat Philippines, where Flava claimed they bought their vapes.
The lawmaker said the committee report on Flava’s supposed tax evasion issue will be out this week.
