Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reports another win in the BIR’s war against illicit trade. The BIR simultaneously raided four (4) large-scale manufacturers of illicit cigarettes in Clark, Pampanga last September 12, 2024. A total of Php 8,060,882,609.20 in tax liability has been initially computed by the BIR, due to its discovery of illicit cigarettes and unregistered machines.
This operation is the largest illicit cigarette operation conducted by the BIR in terms of total tax liability since Commissioner Lumagui became the head of the BIR.
“The BIR will continue to strengthen its efforts against illicit cigarette trade, wherever it is located. This Php 8 Billion raid in Clark, Pampanga shows that the BIR targets even large-scale manufacturers of illicit cigarettes, not just small-scale dealers or smugglers. The BIR supports the call of President Bongbong Marcos to eradicate illicit tobacco trade. The BIR will do its share to protect the livelihood of legitimate tobacco farmers,” Commissioner Lumagui stated.
The BIR has consistently spearheaded skirmishes against illicit tobacco trade. Last September 2024, the BIR conducted a night raid in Caloocan and Quezon City, which lasted until past midnight, uncovering illicit cigarettes with Php 838 Million in tax liabilities.
Last August 2024, the BIR also conducted a Sunday raid of the Philippine Vape Festival 2024 where thousands of vape products were seized.
The manufacturers of illicit cigarettes that were raided in Clark, Pampanga are now being investigated for violation of the National Internal Revenue Code (NIRC). This includes violation of Section 263. Unlawful Possession or Removal of Articles Subject to Excise Tax Without Payment of the Tax, Section 265-B. Violations Committed by Manufacturers, Importers, Indentors, and Wholesalers of Any Apparatus or Mechanical Contrivance Specially for the Manufacture of Articles Subject to Excise Tax and Importers, Indentors, Manufacturers or Sellers of Cigarette Paper in Bobbins, Cigarette Tipping Paper or Cigarette Filter Tips, Section 260. Unlawful Possession of Cigarette Paper in Bobbins or Rolls, Etc., Section 255. Failure to File Return, Supply Correct and Accurate Information, Pay Tax Withhold and Remit Tax and Refund Excess Taxes Withheld on Compensation, Section 254. Attempt to Evade or Defeat Tax, Section 145. Cigars and Cigarettes, and Section 236. Registration Requirements of the NIRC.
