Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. said a raid in several locations in Agusan del Sur and Surigao del Sur provinces resulted in the confiscation of 347,869 packs of illicit cigarettes on April 24, 2024.
The illicit traders will face P219,157,470.00 in tax liability, he said.
“Residential houses are now being used as warehouses by traders of illicit cigarettes. If you see any signs of illicit cigarettes or vape products in your neighborhood, report the same to the BI,” Lumagui said in a statement.
“Illicit trade destroys legitimate businesses. It destroys the livelihoods of millions of Filipinos. It undermines fair competition. We urge all consumers to stop buying illicit cigarettes and vape,” he said.
The BIR said the illicit traders violated several tax measures.
It said the raid was made possible with the assistance of Air Force intelligence, the Military Intelligence Group, and the Armed Forces of the Philippines 401st Brigade.
“We will continue to work with various enforcement agencies as part of our campaign against illicit trade. Upon discovery of the cigarettes, the items were immediately identified as illicit because none of the items bore the required BIR stamps,” the agency said.
It said the unexplained possession of illicit cigarettes, the tax on which has not been paid, is already punishable by imprisonment under the National Internal Revenue Code.
“We will include the owners of these warehouses and residential houses in the cases that we will file. Liability attaches to the possessor of the illicit goods,” the BIR said.
