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Authorities bust massive underground tobacco ring in Northern, Central Luzon

Published Mar 6, 2026 10:59 am
PNP chief Gen. Jose Melencio C. Nartatez, Jr. inspects the confiscated cigarettes and other materials in two separate sites in Pampanga. (photo: PNP)
PNP chief Gen. Jose Melencio C. Nartatez, Jr. inspects the confiscated cigarettes and other materials in two separate sites in Pampanga. (photo: PNP)
Tax authorities and national police seized more than 185,000 packs of illicit cigarettes in a coordinated sweep in Northern and Central Luzon amid government crackdown on the underground tobacco trade.
The Bureau of Internal Revenue (BIR) and the Philippine National Police (PNP) conducted 76 simultaneous operations on March 2, according to an agency statement on Friday March 6.
The raids resulted in the confiscation of 185,233 packs of illicit cigarettes with estimated tax liabilities and administrative charges totaling ₱43 million. The enforcement operation is part of broader effort by the government to plug revenue leaks and protect the domestic tax base from smuggled and untaxed goods.
The bulk of the enforcement activity occurred within Revenue Region No. 2, covering the Cordillera Administrative Region.
Led by Regional Director Joseph M. Catapia, authorities executed 67 raids across the region in coordination with various provincial police offices. These operations targeted 51 retail outlets and yielded 183,558 packs of assorted smuggled brands.
The BIR estimated the total tax liability for this region alone at ₱41.8 million, which includes mandatory administrative penalties.
In a parallel move, the BIR’s Central Luzon office, headed by OIC-Regional Director Saripoden M. Bantog, targeted retailers of untaxed tobacco products in Revenue Region No. 4. Working alongside the regional police, officials inspected multiple establishments and identified nine businesses in possession of illicit excisable articles. This segment of the operation led to the seizure of 1,675 packs, carrying an estimated tax deficiency of ₱1,363,271.14.
Store owners caught with the illegal inventory are facing criminal and administrative charges under the National Internal Revenue Code of 1997. The violations include non-payment of excise and value-added taxes, as well as failure to comply with graphic health warning requirements.
The March 2 sweep follows a series of similar raids in February, signaling that the BIR intends to maintain a high-frequency enforcement schedule throughout the year.
The crackdown aligns with the “BIR D.A.R.E.S.” reform agenda and supports the broader economic strategy of Finance Secretary Frederick D. Go.
By intensifying its focus on excisable products, the bureau aims to improve investment confidence and ensure a level playing field for legitimate businesses that comply with the country’s tax laws. The BIR stated it will continue these nationwide operations to safeguard public funds and bolster the national treasury.
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