BIR blocks P461M in potential tax losses from hot tobacco
The Bureau of Internal Revenue (BIR) blocked over P400 million in potential tax losses through major raids on illicit cigarette operations in Pampanga. The BIR seized counterfeit excise stamps and tens of thousands of untaxed cigarette packs.
In a statement, the agency said it protected an estimated P460.98 million in foregone revenue after enforcement operations on Feb. 11 and Feb. 16. This involved two warehouses in San Fernando and San Simon in Pampanga.
The first raid yielded cigarette manufacturing equipment and raw materials valued at approximately P147.6 million.
Authorities also recovered around 700,000 counterfeit excise tax stamps worth P48.62 million. These were verified to be intended for illegal cigarette production and distribution.
In San Simon, more than 1,000 master cases of illicit cigarettes or roughly 506,600 packs, were seized, with a total tax liability of P412.36 million.
This amount includes excise tax, value-added tax, surcharges, interest, administrative penalties and inspection fees.
“We will relentlessly pursue those who seek to undermine lawful revenue collection. Our enforcement actions safeguard government resources and ensure that funds intended for essential public services are protected from illicit trade,” BIR Commissioner Charlie Mendoza said.
The BIR said it will file criminal and tax charges once warehouse owners and other responsible parties are identified.
Mendoza told reporters last week that the agency will focus this year on curbing illicit tobacco, vape and fuel trade.
The BIR is working to meet its P3.431-trillion revenue target, after narrowly missing its P3.2-trillion goal in 2025.
In a related development, Pampanga Gov. Lilia Pineda has ordered the inspection of nearly 1,000 warehouses in Mexico town alone.
