The Bureau of Internal Revenue (BIR) has filed an ₱8.5 billion tax evasion case against individuals behind an illicit cigarette factory and three warehouses raided in Bulacan and Valenzuela, marking the largest enforcement operation against illegal cigarettes in 2024.
In a post on the official BIR Facebook page, BIR Commissioner Romeo Lumagui Jr. revealed that “the BIR has filed an ₱8.5 billion tax evasion case against the criminals behind an illicit cigarette factory and three warehouses in Bulacan and Valenzuela. It was the largest operation of the BIR against illicit cigarettes last 2024.”
The BIR chief emphasized that the filing of these criminal cases demonstrates its firm commitment to collecting the taxes due from those engaged in illicit trade, and that regardless of the size of their operations, unscrupulous individuals must be warned that crime does not pay.
Under the law, violators of excise tax regulations may be sentenced to up to 10 years in prison and be required to pay fines equivalent to the total amount of unpaid taxes, in addition to the confiscation and forfeiture of all illicit goods and manufacturing equipment.
“The BIR will not stop filing criminal cases against large-scale illicit cigarette manufacturers and distributors. Big or small, all operations of illicit cigarettes in the Philippines are criminal in nature,” stressed the lawyer.
On the night of November 6, 2024, BIR agents, in coordination with law enforcement authorities, raided an illegal cigarette manufacturing facility in Bulacan and three warehouses in Valenzuela suspected to be part of a larger criminal syndicate.
Authorities confiscated cigarette-making equipment, raw materials, and illicitly manufactured cigarette products, while six Chinese nationals involved in the operations were arrested.
The tax evasion cases were formally filed on November 14, 2024, and February 7, 2025, with total tax liabilities amounting to ₱8,544,809,067.50.
The individuals behind these operations are being prosecuted for violating key provisions of the National Internal Revenue Code, including:
– Section 236 in relation to Section 258 – Unlawful Pursuit of Business
– Section 263 – Unlawful Possession or Removal of Articles Subject to Excise Tax Without Payment of Tax
– Section 265-B – Unlawful Possession of Any Apparatus or Mechanical Contrivance for the Manufacture of Cigarettes
– Section 260 – Unlawful Possession of Cigarette Paper in Bobbins or Rolls, Cigarette Tipping Paper, or Cigarette Filter Tips
If found guilty, the individuals behind these illicit operations face severe penalties, including substantial fines and imprisonment.
Under the law, violators of excise tax regulations may be sentenced to up to 10 years in prison and be required to pay fines equivalent to the total amount of unpaid taxes, in addition to the confiscation and forfeiture of all illicit goods and manufacturing equipment.
