By Anna Leah Gonzales
MANILA – The Bureau of Internal Revenue (BIR), Bureau of Customs (BOC) and the Philippine National Police (PNP) seized cigarette packaging materials, counterfeit stamps, tipping paper and other raw inputs used in cigarette production from a raid in Apalit, Pampanga.
In a statement Wednesday, BIR said the enforcement operation, carried out on March 5 and 6, uncovered large volumes of cigarette manufacturing materials inside a warehouse located within the Golden Haojia Industrial Compound in Barangay Balucuc.
Based on BOC valuation, the seized materials were valued at around PHP382 million.
During the operation, authorities also recovered more than 4.8 million BIR excise tax stamps, including counterfeit stamps bearing identical serial numbers, indicating their intended use in large-scale illicit cigarette manufacturing.
The BIR said that based on initial estimates, the counterfeit stamps could have been used to produce untaxed cigarettes resulting in about PHP93.7 million in potential excise tax losses to the government.
Initial verification by the BIR showed that the warehouse was not registered with Revenue District Office No. 21B – South Pampanga, which has jurisdiction over Apalit.
The warehouse was secured and sealed by authorities pending further investigation.
The BIR said the operation prevented the possible large-scale manufacture and distribution of untaxed cigarettes that would have caused significant revenue losses while undermining legitimate businesses in the tobacco industry.
“Illicit tobacco operations deprive the government of critical tax revenues, distort fair competition in the market, and expose consumers to unregulated products,” it said.
The BIR said authorities are currently determining the owner of the facility and the extent of involvement of individuals linked to the operation.
BIR Commissioner Charlito Mendoza said the operation is part of BIR’s intensified efforts to combat illicit tobacco trade and safeguard government revenues.
“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,” Mendoza said.
Under the leadership of President Ferdinand R. Marcos Jr., the BIR continues to intensify enforcement against illicit trade as part of the vision of a Bagong Pilipinas, where public service is efficient, transparent, and responsive. (PNA)
