The Bureau of Internal Revenue (BIR) vowed to rigorously enforce the Anti-Agricultural Economic Sabotage Act in a bid to combat illicit trade in the agricultural sector.
In a statement, BIR Commissioner Romeo D. Lumagui, Jr. said that all bureau personnel will be mobilized to ensure the effective implementation of Republic Act No. 1202.
Lumagui described the new law as “landmark legislation” that enhanced the bureau’s enforcement capabilities against agricultural smuggling.
"The BIR will deploy all revenuers needed to fully enforce the Anti-Agricultural Economic Sabotage Act. The BIR supports the stance of the National Government in protecting the Agriculture Sector,” Lumagui said.
He further stated, “Agricultural Smuggling as Economic Sabotage is an attack against our financial system. It destroys the livelihood of farmers. It contributes to the higher price of basic commodities. It is tax evasion of the highest order.”
Under R.A. 12022, the classification of smuggled tobacco extends to any products that fail to meet BIR's regulatory requirements, encompassing both unmanufactured and manufactured tobacco products.
This includes cigarettes, cigars, heated tobacco products, vapes, and any tobacco intended for smoking, heating, or other uses.
The legislation stipulates that selling tobacco products at prices 30 percent below the Daily Price Index raises a presumption of smuggling.
Moreover, the mere possession of smuggled agricultural goods in any warehouse, vessel, or storage area serves as prima facie evidence of agricultural smuggling as economic sabotage.
Severe penalties await offenders, with potential sentences of life imprisonment and fines amounting to five times the value of the smuggled agricultural product.
Notably, these offenses are classified as non-bailable, underscoring the seriousness of the BIR's commitment to curbing agricultural smuggling.
"The BIR will continue its fight against Agricultural Smuggling, whether that should involve the smuggling of tobacco, cigarettes, vape, or other agricultural products,” Lumagui said.
“We have conducted nationwide raids. We have raided festivals. We raided warehouses even at night. We will not stop until we eradicate all forms of illicit trade,” he concluded.