The Bureau of Internal Revenue (BIR) on Thursday brought the Department of Justice (DOJ) to justice in 69 tax evasion cases worth at least P1.8 billion against illegal tobacco traders arrested for selling untaxed counterfeit or smuggled cigarettes. I filed a complaint with the Department of Justice (DOJ). Simultaneous attacks in various parts of the country in January 2023.
BIR Director Romeo Lumagui said the government has suffered losses of around P50 billion to P100 billion due to illegal activities. The money may have been used to fund medical services and various government projects.
“Based on the results of the nationwide raid conducted last January 25 against illegal tobacco, including fines and penalties, the total amount of raids we filed today amounted to P1.8 billion.” [traders]. Again, this was the first nationwide operation in his BI history,” Lumagui noted.
Lumagui warned that the agency would continue its campaign against illegal tobacco traders by conducting further raids and filing lawsuits.
He added that the BIR will focus on the city of Zamboanga and the province of Pampanga, which are considered “hotspots” for tobacco smuggling.
BIR’s nationwide raid in January targeted 378 stores in Luzon, the Visayas and Mindanao.
Lumagui said all income areas of the BIR participated in the nationwide raid because illegal tobacco is considered a national concern for the BIR.
“After the BIR first raided illegal tobacco outlets and warehouses nationwide last January 2023, we now have 69 criminal cases against holders and owners for alleged tax evasion. “This is a warning to all illegal traders. The BIR will not only raid your stores and warehouses, but also file criminal charges against you. This will not be the last time,” he added.
Lumagui also said the BIR was investigating the sources of illegally sold cigarettes across the country, noting that major syndicates may be supplying these sellers.
BIR has also identified the locations of factories where counterfeit cigarettes are being smuggled.
“BIR protects the Philippine economy by leveling the playing field. Everyone has to pay taxes. You have to register with the BIR and pay your taxes,” Lumagui reminded taxpayers.
“Failure to do so will result in a raid on your store and criminal prosecution against you. We are constantly monitoring your business. Not only will they have to pay taxes, but they will also lose their freedom,” he added.
