Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. on Thursday reported another win in the fight against illicit trade with the recent raid of an illicit cigarette factory and warehouse in Cebu province on Oct. 3 and 5, 2024.
The BIR estimates around P107,756,900.45 in tax liability after seizing 32,545 counterfeit internal revenue stamps, 44, 310 packs of illicit cigarettes, 13 machines used for manufacturing cigarettes and raw materials for cigarettes.
“The BIR raided another large-scale illicit cigarette factory and warehouse. This raid in Cebu uncovered an estimate of P107 million in tax liability. The BIR will not stop raiding all illicit trade activities, wherever they may be located. We will protect the legitimate agricultural sector and the thousands of jobs it produces for our Filipino farmers,” Lumagui said.
Several violations of the National Internal Revenue Code (NIRC) were committed by the operators of this illicit cigarette factory and warehouse, he said.
Lumagui said these include Section 265(c) for possession of counterfeit internal revenue stamps, Section 263 for unlawful possession or removal of articles subject to excise tax, Section 265-B for violations committed by manufacturers, importers, indentors and wholesalers of any apparatus or mechanical contrivance specially for the manufacture of articles subject to excise tax.
He said other violations the factory also violated Section 260 for unlawful possession of cigarette paper in bobbins or rolls, Section 236 for registration requirements of the NIRC, Section 254 for attempt to evade or defeat tax and Section 255 for failure to file return, supply correct and accurate information.
