Vaping Brand Flava Accused of 800 Million Peso Tax Evasion; Philippine Lawmakers Want Its Products P

Lawmakers have called for a halt to sales of the Flava vape brand over allegations that it owes 800 million pesos in unpaid taxes. They urged the Department of Trade and Industry to order e-commerce giant Lazada to stop sales, while praising Shopee for already removing the brand from its platform.

According to a breaking report from CNN Philippines on December 13, a Philippine lawmaker wants sales of the vaping brand Flava to be stopped, especially on online platforms. The reason is its alleged failure to pay 800 million pesos (about RMB 102 million) in taxes.

"Despite all the measures we have taken, Flava and its vaping products are still on the market," said Rufus Rodriguez, representative of Cagayan de Oro City’s 2nd District, during the second hearing of the House ways and means committee on the alleged 1.428 billion pesos worth of smuggled Flava products.

Rodriguez asked the Department of Trade and Industry (DTI) to order online marketplace giant Lazada to stop its sellers from offering Flava vaping products, while commending Lazada’s competitor Shopee for removing the brand from its platform.

"Flava is still being sold online. We also urge the DTI to tell Shopee to continue banning Flava products from online sales," he said.

Flava reportedly markets itself as the “number one vape brand” in the Philippines. Last month, Philippine law enforcement discovered illegally imported Flava vaping products worth about 1.43 billion pesos in a raid, with a taxable value of about 728 million pesos (about RMB 93.24 million). Rodriguez said this amount does not yet include as much as 70 million pesos in excise tax and 84 million pesos in 12% value-added tax (VAT).

"The government is owed about 800 million pesos in import duties, excise tax, and VAT," he said.

The committee also cited Flava CEO Gen Vincent Fabro and HypeRBArvape company director ReynALD Llanto for contempt and ordered their arrest after they failed to appear.

Rodriguez also summoned Shi Lichao, the general manager of a company based in Shenzhen, China. The company is the manufacturer that supplies vaping products to Denkat Philippines, from which Flava claims it purchased the vaping products.

The lawmaker said the committee’s report on Flava’s alleged tax evasion will be released this week.