THE Bureau of Internal Revenue (BIR) started destroying seized cigarettes representing P6.4 billion in unpaid taxes this week in Pampanga. In a statement on Monday, the BIR said it will destroy 14.3 million packs of cigarettes at 12 sites between Feb. 24 and 28.
“This initiative is a testament to our commitment to uphold the law and deter illicit activities. This is the rational next step from the nationwide raids we conducted since 2022 and the filing of the criminal cases against these individuals and corporations,” Commissioner Romeo D. Lumagui, Jr. said.
The first day of the nationwide destruction of illicit cigarettes and cigarette-making equipment was held at Digama Waste Management Services in Porac.
The BIR said the destruction of the illicit products seeks to highlight the public health risks posed by cigarettes from unknown sources in the absence of quality control and regulation.
The BIR has criminally charged the parties in possession of these cigarettes as part of its campaign against tax evaders.
The BIR on Feb. 17 filed a tax evasion case against operators of a facility following a raid. The most recent operation resulted in the seizure of products that evaded P8.54 billion in taxes.
Mr. Lumagui on Feb. 20 estimated foregone revenue in 2024 from the illicit cigarette trade at P30 billion to P40 billion.
“The destruction of illicit goods is a crucial step in maintaining the integrity of our revenue collection, protecting the health of our citizens, and safeguarding the interests of legitimate businesses who properly file and pay the correct taxes due to the government.” Mr. Lumagui said.
In a separate statement, the Philippine Tobacco Institute (PTI) expressed its support for the exercise while calling for a dedicated task force to oversee operations against traders of illicit cigarettes and counterfeit tobacco products.
“The PTI fully supports these enforcement efforts and remains committed to collaborating with government agencies to eliminate illicit trade,” the PTI said in a statement on Monday.
The group said this destruction of these counterfeit and tax-evading products shows the BIR is acting “to protect the integrity of the tobacco industry” — which contributes to the excise tax collection annually and supports health and social services programs.
“A dedicated task force focusing on enforcement, prevention, and intelligence-sharing would strengthen the government’s ability to disrupt illicit networks and hold offenders accountable,” it said.
It also noted that the illicit trade is detrimental to the government’s revenue, and the livelihood of farmers, manufacturers and retailers. — Aubrey Rose A. Inosante
