Bureau of Internal Revenue (BIR) commissioner Romeo Lumagui Jr. declared the full support of the agency in enforcing the recently-signed Republic Act No. 12022 or the Anti-Agricultural Economic Sabotage Act.
This landmark legislation will be added to the different enforcement activities of the BIR against illicit trade, he said.
“The BIR will deploy all revenuers needed to fully enforce the Anti-Agricultural Economic Sabotage Act. The BIR supports the stance of the national government in protecting the agriculture sector. Agricultural smuggling as economic aabotage is an attack against our financial system. It destroys the livelihood of farmers. It contributes to the higher price of basic commodities. It is tax evasion of the highest order,” Lumagui said.
RA 12022 provides that smuggled tobacco includes that of tobacco that is not compliant with the prevailing processes and requirements of the BIR. This covers unmanufactured tobacco and manufactured tobacco.
The latter refers to cigarettes, cigars, heated tobacco products, vape or any product containing tobacco that is intended for smoking, heating, puffing, oral or nasal use.
The sale of tobacco products at a price 30-percent below the daily price index raises the presumption that acts of smuggling were committed.
The mere possession of smuggled agricultural products in any warehouse, vessel, transport and other storage areas would be considered as prima facie evidence of agricultural smuggling as economic sabotage.
The penalty to be imposed against a person who commits Agricultural Smuggling as Economic Sabotage could reach that of life imprisonment and a fine five times the value of the agricultural product. It is a non-bailable offense.
“The BIR will continue its fight against Agricultural Smuggling, whether that should involve the smuggling of tobacco, cigarettes, vape, or other agricultural products. We have conducted nationwide raids. We have raided festivals. We raided warehouses even at night. We will not stop until we eradicate all forms of illicit trade,” Lumagui said.
