BIR seizes P382-M illegal cigarette manufacturing materials

THE Bureau of Internal Revenue (BIR) has seized about P400 million worth of illegal cigarette manufacturing materials, which could have evaded over P90 million in excise taxes.

In an operation with the Bureau of Customs and the Philippine National Police on March 5 and 6, the BIR recovered over P382 million worth of materials and 4.8 million BIR excise tax stamps, noting that some were counterfeit with identical serial numbers.

“Based on initial estimates, the counterfeit stamps could have been used to produce untaxed cigarettes resulting in approximately P93.771 million in potential excise tax losses to the government,” the BIR said in a statement on Wednesday.

The raid was conducted in a warehouse within the Golden Haojia Industrial Compound in Apalit, Pampanga, which was not registered with the revenue district office of Apalit, according to the BIR.

“Illicit tobacco operations deprive the government of critical tax revenues, distort fair competition in the market, and expose consumers to unregulated products,” the BIR said.

The bureau also noted that the illegal materials, if not confiscated, could have led to “significant” foregone revenue and undermined local registered tobacco businesses.

“The BIR will continue to strengthen enforcement against illicit cigarette operations that undermine legitimate businesses and deprive the government of much-needed revenues for public services,” BIR Commissioner Charlito Martin R. Mendoza said in a statement. — Katherine K. Chan