The government lost around P30 billion in taxes intended for the health care services of the Department of Health (DOH) last year due to the country’s illegal cigarette operations, the Department of the Interior and Local Government (DILG) confirmed on Monday, Feb. 16.

In a press briefing, DILG Secretary Juanito Victor “Jonvic’’ Remulla said that the grave offense is in violation of the “Anti-Agricultural Economic Sabotage Act’’ where the seizure of properties may be imposed.

“Non-bailable (illegal cigarette operation offense) pero ang hinahabol namin yung buong ecosystem. Last week mga retailers sa lalawigan (Pampanga) ang hinuli namin, pinasara namin ang mga tindahan (It is non-bailable but what we are running after is the entire ecosystem. Last week we apprehended the retailers in Pampanga, we shut down their stores),’’ Remulla noted.

Remulla noted that the Bureau of Internal Revenue (BIR) will file cases related to the illegal cigarette operation starting from the operation, manufacturing and eventually distribution even in retail sale.

“Ang retail nito hindi yung mga pormal na mga lugar katulad ng mga convenience stores. Puro mga sari-sari store kaya ang nag-didistribute dito ngayon tinitingnan namin yung mga wing van binabagsak, binibenta (The retail sales are not in the formal locations like convenience stores. All the distributions are in the variety stores so we are looking at the wing vans, where they are unloaded and sold),’’ he added.

He pointed out that the retailers have approximately P40 profit per pack with the “profit margin’’ of manufacturers estimated at P50 to P60, to P100 per pack.

While not pointing directly at the liability of the local government units (LGUs), Remulla recounted that January 2026 was the start of the fire inspection and the renewal of business permits when pressed if charges may be filed against local officials.

“So yung January may leeway pa yan. Kung lumagpas ng February na hindi nagre-register (business enterprise) ay may problema ang LGU (So, there is a leeway in January. But if it was not registered beyond February, then the LGU has a big problem),’’ he insisted.

In the aftermath of the January 29 raid, Remulla said that the illegal cigarette operations from San Simon, Mexico and San Fernando had ceased in a single day.

“So ang pinakamabigat dito ay hindi ang liability ng LGU kungdi forfeiture of properties under the Anti-Agricultural Sabotage Act. So ito ay magfa-file ang DOJ (Department of Justice) for forfeiture yung ito, sa Mexico, San Simon lahat yan ay mapapasailalim na sa gobyerno (So what is worst is not the LGU’s liability but the forfeiture of properties under the Anti-Agricultural Sabotage Act. So the DOJ will file forfeiture charges in Mexico, San Simon all of them will be under government possession),’’ Remulla exclaimed.

Remulla remained puzzled on why the illegal cigarette operations are located in Pampanga, adding that authorities have persons of interests (POIs) that are still being probed on their possible tie-up with the unlawful activity.

Likewise, Remulla lamented the possible presence of a “tobacco lord’’ in Pampanga with two Central Luzon congressmen being prime suspects.

“Under investigation sila. So hindi namin papangalanan pero sila ay persons of interest dito (illegal cigarette operations) (They are under investigation. So we cannot name them yet but they are persons of interest here),’’ Remulla acknowledged.

Further, Remulla lamented that authorities are trying to uncover the possible involvement of an “overall mastermind,’’ believing that it was much of a coincidence that the illegal cigarette operations in San Simon and Mexico stopped after the January 29 raid.

However, Remulla said that there are no pieces of evidence yet that links the shift of the Philippine Offshore Gaming Operator (POGO) to illegal cigarette manufacturing trade.