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Manila Bulletin devider Business devider The Economy devider BIR raids disrupt ₱460-million illicit tobacco supply chain

BIR raids disrupt ₱460-million illicit tobacco supply chain

Published Feb 20, 2026 05:48 pm
The Bureau of Internal Revenue (BIR) intensified its nationwide campaign against the illicit tobacco trade this month, executing a series of raids in Central Luzon that protected an estimated ₱460.98 million in government revenue.
In a statement, the BIR reported that the operations, conducted in coordination with the Philippine National Police (PNP), signal the bureau's aggressive shift in its strategy to disrupt the supply chains of tax-evading manufacturers.
Enforcement teams led by Revenue Region No. 4 targeted two separate sites in Pampanga on Feb. 11 and Feb. 16, according to a statement from the BIR.
The initial phase of the operation focused on the Chamian Commercial Warehouse in the City of San Fernando, where authorities seized cigarette manufacturing machinery and raw materials valued at approximately ₱147.6 million.
Investigators also recovered roughly 700,000 counterfeit excise tax stamps, which the BIR’s authentication system confirmed were intended for illegal distribution. These stamps represented a potential tax loss of ₱48.62 million.
The momentum continued five days later at the Golden Sun 999 Industrial Park in San Simon. During that raid, agents confiscated 1,013 master cases of illicit cigarettes, totaling about 506,500 packs.
The BIR calculated the total tax liability for the seized goods at ₱412.36 million. This figure includes unpaid excise taxes, value-added tax, and substantial administrative penalties, as well as interest and surcharges.
BIR Commissioner Charlito Martin R. Mendoza said the sustained pressure on the underground tobacco market is essential for maintaining the integrity of the nation's tax system.
He noted that such enforcement actions are designed to protect government resources and ensure that funds earmarked for public services are not siphoned off by illicit traders.
Beyond the immediate revenue gains, the bureau aims to level the playing field for legitimate manufacturers who comply with the country’s tax laws but face unfair competition from untaxed goods.
The BIR is currently conducting follow-up investigations to identify the owners of the warehouses and other key players in the distribution network. Criminal and tax charges are being prepared under the National Internal Revenue Code.
The agency has vowed to maintain its nationwide vigilance, citing the use of counterfeit stamps as a primary target for future enforcement actions.
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