THE Bureau of Internal Revenue (BIR) again conducted simultaneous nationwide raids against the illicit cigarette and alcohol trade.
The nationwide crackdown included Cabanatuan City in Nueva Ecija, Talisay in Camarines Norte, Camarines Sur, Bacolod City, Davao City, and cities in Metro Manila.
In Makati, the bureau confiscated several bottles of alcohol and boxes of cigarettes worth millions of pesos, with most products bearing Chinese characters. All of the products are missing the excise tax stamp – a seal usually found around bottle caps and opening flaps of cigarettes. These stamps are proof that the products were imported and taxed.
One of the two stores, selling expensive wine, had the excise stamp on the side of the bottle. The BIR speculated that the intention to put the stamps improperly was to ‘recycle’ the seals for other bottles.
“Kaya sa ibabaw ilalagay para kapag binuksan ang alak ay hindi mare-recycle ang stamp na nabibili. Ayaw man natin sabihin na sinasadya ‘yan pero malinaw sa aming regulations na dapat sa ibabaw ‘yan nilalagay sa gilid para di magamit ulit,” BIR commissioner Romeo Lumagui Jr.
The confiscated items will be used for evidence for case filing and eventually destroyed.
In May, the bureau filed 69 tax evasion charges against illicit traders caught during nationwide simultaneous raids conducted in January. These stores were caught selling untaxed, fake, and smuggled cigarettes. The penalties and fines amount to P1.8 billion.
Pattern
Lumagui said they have observed that the stores, selling untaxed imported products, carry similar brands. The bureau is bent on zeroing in on the sources of this illicit trade. Manufacturers and warehouses of these products are also on the bureau’s radar.
“Marami common sa iba’t-ibang parte ng Pilipinas. Pare-pareho ang brand na nabebenta at kumakalat kaya ang pinupuntirya natin ay ‘yung source ng nagbebenta ng produkto na ito at titignan natin ‘yan at ‘an ang susunod nating hahabulin,” Lumagui said.
“Naghahanap kami ng warehouses, nagkakaroon tayo ng imbestigasyon saan ba nag-iimbak ang retailers na nagbebenta ng produktong ito,” Lumagui said.
Low excise tax collection
The bureau noted that sin tax collection had been weak for several years.
Lumagui estimated that the agency is 20 percent short of this year’s excise tax collection goal. The agency also estimated that the government is losing P50 to P100 billion a year in tax revenues from illicit trade.
“Itong excise tax ang isa sa pinakamababa dahil laganap at bilyon ang nawawala sa’tin dito… Nandyan ‘yan sa ating batas na a part of nakoko-kolekta sa excise tax ay napupunta sa healthcare system kaya naman nagpupursige rin tayo na makolekta ang excise tax.” Lumagui said.
The bureau collected P261.64 billion in excise tax from “sin products” from January to December 2022, or two percent lower than the P266.61 billion collection in 2021. The full-year sin tax revenue was also below 16 percent against the P313.2 billion goal for 2022. (ABS-CBN News)
