BIR ops net 185,000 illicit cigarette packs, P43M in tax liabilities

The Bureau of Internal Revenue (BIR) seized over 185,000 packs of illicit cigarettes in coordinated raids across Luzon, with combined tax liabilities and administrative charges totaling P43 million.

In a statement on Friday, the BIR said it had conducted 76 simultaneous operations across North and Central Luzon in coordination with the Philippine National Police, resulting in the seizure of 185,233 packs of smuggled cigarettes.

Of the total, 183,558 packs were confiscated from 51 stores in the Cordillera Administrative Region during 67 operations, with tax liabilities and administrative penalties totaling P41.8 million.

The remaining 1,675 packs were seized from nine stores in Central Luzon, carrying tax liabilities and penalties of P1.4 million.

“The March 2 seizures, which followed earlier enforcement operations in February, are part of BIR’s sustained enforcement drive and will continue nationwide to safeguard public funds and ensure all excisable products in the market are properly taxed,” the BIR said.

All store owners will face charges under the National Internal Revenue Code of 1997, as amended and other applicable laws for violations related to excise taxes, value-added taxes and graphic health warning compliance.

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“Sustained enforcement operations form part of revenue-base protection under BIR’s five-point reform agenda, BIR DARES and align with the big, bold economic reforms of Finance Secretary Frederick Go aimed at strengthening investment confidence, improving the ease of doing business and sustaining economic growth,” the BIR added.

The BIR has since been stepping up efforts to curb the illicit tobacco trade, which is costing the government billions in lost revenue. This year, the agency is targeting P166.57 billion in excise tax collections from tobacco.

In response to the growing concern, Sen. Sherwin Gatchalian, chair of the Senate finance committee, filed Senate Resolution 250 in January seeking an inquiry into possible involvement of government officials in tobacco smuggling.