BIR: ₱460.98M in revenues protected amid anti-illicit tobacco ops

The Bureau of Internal Revenue (BIR) on Saturday said recent anti-illicit tobacco operations in Pampanga, forming part of a wider national anti-tax evasion campaign, resulted in the protection of an estimated P460.98 million in government revenues.

In a news release, the BIR said operations, conducted on February 11 and 16, 2026, formed part of a single, sustained enforcement effort led by BIR Revenue Region No. 4 (Central Luzon), in coordination with the Philippine National Police–Criminal Investigation and Detection Group (PNP-CIDG). 

The taxman said the successive operations reflect a continuing strategy to disrupt illicit tobacco supply chains, prevent revenue leakage, and strengthen compliance with excise tax laws.

The BIR said the first phase of the operation on February 11 involved the raid of Chamian Commercial Warehouse in Barangay Panipuan, City of San Fernando, Pampanga, where enforcement teams seized cigarette manufacturing equipment and raw materials valued at approximately P147.6 million. 

Authorities also recovered around 700,000 counterfeit excise tax stamps worth an estimated P48.62 million. 

Verification through the BIR’s Excise Tax Stamp Authentication System confirmed that the stamps were intended for illegal cigarette production and distribution, pointing to an organized scheme to evade excise tax obligations.

Building on the initial enforcement action, authorities continued operations on February 16 at Golden Sun 999 Industrial Park in San Simon, Pampanga, leading to the seizure of 1,013 master cases of illicit cigarettes, equivalent to roughly 506,500 packs. 

The BIR estimated the corresponding tax liability at P412.36 million, inclusive of excise tax, value-added tax, surcharges, interest, administrative penalties, and inspection fees. 

The continuing operations prevented the circulation of untaxed excisable goods and safeguarded substantial public revenues from potential loss, it said.

Internal Revenue Commissioner Charlito Martin Mendoza said sustained enforcement against illicit tobacco trade remains critical to protecting lawful revenue collection and ensuring that government resources for essential public services are secured.

“We will relentlessly pursue those who seek to undermine lawful revenue collection. Our enforcement actions safeguard government resources and ensure that funds intended for essential public services are protected from illicit trade,” said Mendoza.

The BIR added that intensified enforcement also protects legitimate manufacturers and compliant taxpayers by addressing unfair competition from illicit traders. 

The taxman said follow-up investigations are underway to identify warehouse owners and other responsible parties, with criminal and tax charges being prepared under the National Internal Revenue Code and other applicable laws.

The bureau said it will continue conducting sustained nationwide operations against illicit cigarette manufacturing and the use of counterfeit excise tax stamps as part of its mandate to protect public revenues and uphold the integrity of the tax system. —VBL, GMA Integrated News