The Bureau of Internal Revenue (BIR) said Monday it filed criminal cases with the Court of Tax Appeals (CTA) on July 1, 2025, against individuals allegedly involved in two major illicit cigarette operations. These cases stem from an estimated P796.95 million in tax deficiencies.
The BIR, led by Commissioner Romeo Lumagui Jr., elevated the cases to the CTA after the Department of Justice (DOJ) ruled in favor of the agency’s complaints.
One case targets the lessee of a warehouse in Barangay Ugong, Valenzuela City, for the alleged unlawful possession of excisable goods. About 600 master cases of untaxed cigarettes were discovered in the facility in early November 2024 during what the BIR described as its largest operation against illicit cigarettes last year.
The BIR said it is pursuing the case under Section 263 of the National Internal Revenue Code of 1997, which penalizes the possession or removal of articles subject to excise tax without payment. The total tax liability for this case is estimated at P200.72 million.
A separate case, involving a significantly larger tax deficiency of P596.23 million, was also filed with the CTA against a Chinese national. The individual is believed to be operating an illegal cigarette manufacturing facility in Barangay Moranquillo, San Rafael, Bulacan.
The BIR said it charged the individual with multiple violations of the Tax Code, including Section 260 (unlawful possession of cigarette tipping paper or filter tips), Section 263 (unlawful possession of excisable articles without tax payment), and Section 265-B (illegal possession of manufacturing equipment for cigarette production). These charges are based on the 7,844 master cases of illicit cigarettes and manufacturing paraphernalia found at the facility during a joint raid, the BIR said.
The Criminal Investigation and Detection Group (CIDG) also filed a separate human trafficking case in connection with the Bulacan operation after 155 trafficked workers were rescued from the premises.
Lumagui condemned the illicit operations, highlighting the human cost. “One hundred fifty-five Filipinos were victims of human trafficking perpetrated by illicit cigarette businessmen,” Lumagui said.
“Not only were they forced to work for an illegal enterprise, they were also working under unsanitary and unhygienic conditions. We will raid warehouses, seize illicit products and equipment, file criminal charges, and ensure arrests. No one, even the biggest operators, escapes the law,” he said.
The BIR said it would continue to encourage public support in its efforts by reporting activities related to the sale or manufacture of untaxed cigarettes.
“We assure the public that all BIR operations against illicit trade of cigarettes and vape will result in the filing of criminal cases against those involved. We will raid your warehouses. We will file criminal cases. You will be arrested,” he said.