Two Luzon lawmakers suspected In ₱4.5B illegal cigarette operation

MEXICO, Pampanga – Two lawmakers from Northern Luzon are suspected of being the masterminds behind a multi-billion-peso illegal operation that manufactures and trades cigarettes, Interior Secretary Juanito Victor “Jonvic” Remulla said on Thursday.

This developed after authorities arrested six Chinese and rescued 60 Filipinos in the raid of the illegal cigarette factory in Barangay Panipuan.

Remulla said the manufacturing plant operated without licenses and permits for the whole month of January 2026. It has produced a total of around P4.5 billion pesos worth of cigarettes. 

“We suspect there are two northern Luzon politicians behind it,” Remulla said.

“The entire ecosystem, hawak nila ang entire ecosystem ng illegal tobacco…Basta, Luzon-based yung mga congressman na yun,” he added.

(They control the entire ecosystem of illegal tobacco… These congressmen are based in Luzon.)

Remulla said the Department of the Interior and Local Government has received information that the operation started on January 1. He said the machine was set up in December before the Chinese arrived.

He said the Filipinos workers were victims of human trafficking.

According to DILG, the employers forced the victims to work without pay and under inhumane conditions.

Remulla said human trafficking and violations of the Anti-Agricultural Sabotage Act were non-bailable offenses.

The DILG identified the warehouse's incorporators as three Filipinos and two Koreans.

PNP Criminal Investigation and Detection Group (CIDG) Director Robert Morico II said they already sent a subpoena to one of the Filipino incorporators.

In a statement, PNP said they saw similarities among the fake cigarettes found in Mexico, Pampanga, and in earlier operations in Balete, Batangas, on December 31, 202,5 and in Malabon on January 1, 2026.

Remulla said the Philippine government loses over P30 billion in excise taxes last because of the illegal tobacco trade.

“Yung P30 billion pesos na yan na excise tax, papunta sana sa healthcare system ng Pilipinas. So yung bawat sigarilyong illegal na pumapasok dito, ay binabawas sa kalusugan ng mamamayan.  Ang pera pong ‘yan ay dapat sa DOH hospitals, “ Remulla said.

(The P30 billion in lost excise taxes would have gone to the Philippines' healthcare system. The illegal cigarettes coming in affect the health of the citizens. That money should have gone to the Department of Health hospitals.) –NB, GMA Integrated News