P8.5 billion tax case filed over illicit cigarette factory, warehouses

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has filed an P8.5-billion tax evasion case against those behind an illicit cigarette factory and three warehouses in Bulacan and Valenzuela.

In a statement yesterday, BIR Commissioner Romeo Lumagui Jr. said the tax evasion case was a result of a large-scale raid against illicit cigarettes in Bulacan and Valenzuela in November.

“The BIR has filed an P8.5-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,” Lumagui said.

He added that the BIR computed the total tax liability of the culprits, which reached over P8.5 billion.

“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,” Lumagui said.

According to the BIR, the culprits violated the National Internal Revenue Code, particularly Section 236 in relation to Section 258 or Unlawful Pursuit of Business, Section 263 or Unlawful Possession or Removal of Articles Subject to Excise Tax without Payment of Tax, Section 265-B or the Unlawful Possession of Any Apparatus or Mechanical Contrivance for the Manufacture of Cigarettes, and Section 260, which is the Unlawful Possession of Cigarette Paper in Bobbins or Rolls, Cigarette Tipping Paper or Cigarette Filter Tips.

Aside from the tax evasion cases, criminal cases were also filed earlier on Nov. 14 and Feb. 7.

On Nov. 6, 2024, the BIR conducted a simultaneous raid of an illicit cigarette factory in Bulacan and three illicit cigarette warehouses in Valenzuela. All four sites are suspected to be part of one criminal enterprise.

During the raid, the BIR seized a total of 11.5 million packs of illicit cigarettes.

Raw materials, cigarette making machines and cigarette packing machines were also confiscated during the raid.

Six Chinese nationals were arrested by law enforcement officers.