Negosyante News

BIR Seizes 185,000 Packs of Illicit Cigarettes; ₱43 Million in Tax Liabilities

MANILA, Philippines — The Bureau of Internal Revenue (BIR) conducted a series of coordinated raids across North and Central Luzon on March 2, 2026, resulting in the seizure of over 185,000 packs of illicit cigarettes. The operations have uncovered an estimated ₱43 million in unpaid taxes and administrative penalties.

In coordination with the Philippine National Police (PNP), the BIR executed 76 simultaneous operations:

  • Cordillera Administrative Region (CAR): This was the primary focus, with 67 operations across 51 stores. Authorities confiscated 183,558 packs, accounting for ₱41.8 million in tax liabilities.
  • Central Luzon: Nine stores were raided, yielding 1,675 packs with tax liabilities totaling ₱1.4 million.

Store owners and distributors involved face multiple charges under the National Internal Revenue Code of 1997. Violations include:

  • Non-payment of Excise Taxes and Value-Added Tax (VAT).
  • Failure to comply with Graphic Health Warning requirements.
  • Possession of smuggled or untaxed tobacco products.

The BIR stated that these raids are part of a broader “sustained enforcement drive” under the BIR DARES program and the economic reforms led by Finance Secretary Frederick Go.

  • Revenue Target: The government aims to collect ₱166.57 billion in tobacco excise taxes for the year 2026.
  • Senate Inquiry: The crackdown comes as Senator Sherwin Gatchalian seeks a formal inquiry (Senate Resolution 250) into the possible involvement of government officials in large-scale tobacco smuggling.

The BIR has vowed to continue these nationwide operations to protect public funds and ensure a level playing field for legitimate businesses that comply with tax laws.


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