THE Bureau of Internal Revenue (BIR) is intensifying enforcement operations against both emerging and long-standing sources of tax evasion, particularly in the vape and tobacco industries.
BIR Commissioner Romeo Lumagui Jr. said this is part of the Marcos administration’s whole-of-government effort to address not just illicit trade and revenue loss, but also the public health dangers posed by unregulated and often toxic products that enter the market without inspection or permits.
He said the BIR has been carrying out sustained enforcement operations against illicit trade, including the destruction of counterfeit and untaxed cigarettes and the filing of criminal complaints against violators.
In March this year, the BIR in Pampanga destroyed around 14.3 million packs of illicit cigarettes, seized from various operations, with an estimated tax liability of P6.3 billion, as part of its ongoing efforts to remove untaxed products from circulation and deter manufacturers and traders engaged in smuggling and tax evasion.
The BIR recently filed an P8.5-billion tax evasion case against Chinese nationals and several corporations following the raid of an illegal cigarette factory and warehouses in San Simon, Pampanga.
Meanwhile, Lumagui said the recent destruction of P3.26 billion worth of smuggled vape products marked another milestone in the government’s intensified campaign against illicit trade – an effort being led on multiple fronts by the BIR and the Bureau of Customs (BOC).
President Ferdinand R. Marcos Jr., who attended the destruction activity in South Harbor, praised the BIR for its ongoing enforcement efforts, noting that the revenue agency had been actively conducting warehouse seizures to complement the government’s anti-illicit trade campaign.
Lumagui reaffirmed the bureau’s commitment to pursue those behind illegal trade through both enforcement and prosecution.
He urged the public not to patronize illicit cigarette products and to report suspected smuggling or tax evasion activities directly to the BIR.
Meanwhile, legitimate businesses have expressed strong support for the government’s campaign against illicit trade, highlighting the unfair competition posed by smugglers and illegal traders.
Jesus Arranza, chairman of the Federation of Philippine Industries, said “smuggling is creating unfair competition for locally produced goods because it erodes the local market [with] cheaper, no value-added tax or undervalued and substandard imported goods displacing the locally produced commodities.”
Industry leaders assert that such illicit activities undermine the country’s regulatory environment and disadvantage enterprises that diligently comply with tax obligations and legal standards. (PNA)
