BIR strikes hard at illicit cigarette trade in Cebu


The Bureau of Internal Revenue (BIR) has dealt another blow to illicit cigarette trade in the country, with the recent raid of a factory and warehouse in Cebu.

BIR Commissioner Romeo D. Lumagui Jr. announced that the operation on Oct. 3 and 5 resulted in the seizure of 32,545 counterfeit internal revenue stamps.

The operation also seized 44,310 packs of illicit cigarettes, 13 cigarette manufacturing machines, and raw materials used in the production of cigarettes. 

The estimated tax liability for these items amounts to P107.7 million.

“The BIR will not stop raiding all illicit trade activities, wherever they may be locate,” Lumagui said in a statement on Thursday, Oct. 24.

“We will protect the legitimate agricultural sector and the thousands of jobs it produces for our Filipino farmers," he added.

The operators of the illicit cigarette factory and warehouse were found to have violated several provisions of the National Internal Revenue Code (NIRC), including possession of counterfeit stamps, unlawful possession of excise tax-related articles, failure to register with the BIR, and tax evasion.

Last Monday, Lumagui said the BIR was determined to crack down on the spread of illegal vape products.
He said weekly raids will be conducted to target retailers across the country who are selling counterfeit or unregistered vape products. 

Recently, the BIR conducted a nationwide raid, which led to the closure of 408 vape retailers.

The raids covered Bulacan, Manila, Quezon City, San Juan, Makati, Las Piñas, Pangasinan, Benguet, Isabela, Laguna, La Union, Pasay, Albay, Iloilo, Cebu, Bohol, Leyte, Bukidnon, Misamis Oriental, Surigao del Norte, Butuan, Agusan del Sur, South Cotabato, Davao, Negros Occidental, Negros Oriental, and Ilocos Sur.

Common violations among the illicit retailers included the lack of internal revenue stamps and failure to register vape products with the BIR. The exact number of confiscated vape products is still being calculated.

Lumagui emphasized that the BIR is committed to protecting public health and revenue integrity through strict enforcement of tax laws. The agency will continue to conduct regular surveillance and raids to dismantle the illicit vape trade network.

Lumagui expressed frustration over the continual spread of illegal vapes despite repeated warnings and efforts to enforce compliance. 

He warned of regular raids and criminal cases for those involved in the illegal vape trade.