The Bureau of Internal Revenue in Central Visayas destroyed locally manufactured illicit cigarettes and production equipment seized in operations from October 2024 to June 2025 that resulted in P240.64 million in tax liabilities.
Seven individuals were apprehended and charged with excise tax violations, including unlawful possession of raw materials and failure to affix tax stamps, and are currently out on bail.
Department of Finance Secretary Frederick Go inspected 11 containers of unregistered, unlicensed, and undeclared cigarettes during a Cebu visit alongside Bureau of Customs anti-smuggling operations.
THE Bureau of Internal Revenue (BIR) in Central Visayas destroyed locally manufactured illicit cigarettes and production equipment seized in enforcement operations that resulted in P240.64 million in tax liabilities. Authorities are also investigating whether the illegal operations were linked to a larger network.
BIR Revenue Region No. 13 Director Douglas Rufino said the operations were conducted from October 2024 to June 2025 against the illegal manufacture, storage and distribution of cigarettes in Cebu.
Authorities seized illicit cigarette products, counterfeit internal revenue stamps, manufacturing machinery, cigarette raw materials, packaging materials, chemicals and other supplies used in illegal production.
Rufino said the cigarettes were manufactured in Cebu, with authorities identifying a production site in Daanbantayan and a warehouse in Mandaue City.
Seven individuals were apprehended and charged with excise tax violations, including unlawful possession of raw materials and failure to affix tax stamps. They are currently out on bail.
Among the seized equipment were cigarette-packing machines capable of large-scale production, allowing operators to manufacture cigarettes at volumes comparable to legitimate manufacturers.
Authorities have not ruled out the possibility that the operations were linked to a syndicate, although there is no evidence yet to determine whether it is local or foreign.
The confiscated cigarettes and other materials were shredded, while the machinery was dismantled and cut into pieces to prevent reuse.
Tax impact
Department of Finance Secretary Frederick Go said tax collection is essential to funding public services, including classrooms, hospitals, roads, government salaries and financial assistance.
He said tax evasion deprives the government of revenue and places businesses that comply with tax laws at a disadvantage.
“It is the role of the tax collection agencies, the BIR and the BOC, together with the Department of Finance to collect revenues for the country. These revenues are used for the programs of the country,” Go said.
“Therefore it is imperative that our tax collection agencies, our law enforcement agencies run after all these tax evaders,” he added.
Go also said smuggled or unauthorized tobacco products may pose health risks because they are not approved or regulated.
Rufino said locally manufactured illicit cigarettes are sold at significantly lower prices than legitimate products, giving illegal operators an unfair market advantage while allowing them to evade taxes.
Separate BOC seizure
During Go’s Cebu visit, he inspected 11 containers containing unregistered, unlicensed and undeclared cigarettes.
Bureau of Customs (BOC) Deputy Commissioner Agaton Teodoro said the agency has continued to seize illicit tobacco, smuggled agricultural products and vape products in recent months, with apprehensions recorded in Cebu, Manila and Mindanao.
Teodoro said BOC anti-smuggling operations are continuing in coordination with the National Bureau of Investigation and the BIR.
BOC Port of Cebu District Collector Zsae Carrie De Guzman said authorities could not confirm whether raw tobacco materials were being smuggled through the port but acknowledged that the possibility remains.
She said the BOC has strengthened border controls and will further intensify monitoring at ports following the recent seizures. / DPC