Bulacan Revenue District Officer (RDO) Rommel Morente was commended by the Bureau of Internal Revenue (BIR) Region 5 for leading the Philippine National Police - Criminal Investigation Division Group (PNP-CIDG) for the confiscation of P2.4 billion worth of various brands of illicit cigarettes.

Philippine Tobacco Institute (PTI) president Jericho Nograles thanked the media persons who attended the tri-partite regional summit held last Saturday, November 9, 2024, at the QuestPlus Hotel Convention Center in Clark, Pampanga. (Photo courtesy of Celomar H. Dillaper)

BIR Region 5 Director Wrenolph Panganiban said that the operation was carried out in a factory in Barangay Maronqullo, San Rafael, after undercover agents traced trucks delivering counterfeit cigarettes to warehouses in Valenzuela.

The successful raids on the three warehouses in Valenzuela City and a 12-million-sticks-per-day factory in Bulacan on November 6 and 7, highlighted the ongoing efforts to combat the illicit tobacco trade undermining the national economy.

BIR Commissioner Romeo Lumagui Jr. said the two-day joint operation with the PNP-Criminal Investigation Division Group (CIDG) seized approximately P2.4 billion worth of fake cigarettes as part of an all-out campaign against illegal factories.

Assistant BIR Commissioner Jethro Sabariaga, head of the BIR’s Large Taxpayers Service, noted the impact of rampant smuggling and illegal factories on tobacco excise tax collection, which dropped from P177 billion in 2021 to P135 billion in 2023.

The government loses an estimated P60 billion to P100 billion in taxes annually due to these issues.

“A total of 155 workers, mostly from Mindanao, including foreign nationals identified as alias Yanliang, Rock, Zizhan, Zili, and Ziqiang, were arrested in Valenzuela; and Wu Qilong, 30, alias ‘Ronald’ & ‘Tony’, who was caught in Bulacan,” Panganiban said.

The illegal factory could produce 12.9 million cigarettes daily, valued at approximately P45 million per day.

The total value of the seized items, including machinery and raw materials, was estimated at P1.24 billion, according to Morente.

Confiscated brands included Berlin, Two Moon, Dunston Red, Modern, FGD Red, Champion Mild menthol, Richman Royal, Carnival, Fort Menthol, and Soda Red.

At a tri-partite regional summit in Clark, Pampanga, on November 9, Philippine Tobacco Institute (PTI) President Jericho Nograles emphasized the role of the media in curbing illegal cigarette factories and rampant smuggling in Mindanao.

The conference, organized by PTI, the National Press Club (NPC), and the National Tobacco Administration (NTA), was attended by 50 media representatives from Central Luzon.

Nograles urged the local government and barangay officials in Central Luzon to support law enforcement by providing tips on illegal factory locations.

He stressed that timely and accurate information from LGU leaders, including governors, mayors, and barangay captains, is crucial to halting the spread of illegal factories, which deprive the government of billions in tax revenue.