THE Bureau of Internal Revenue (BIR) recently seized illicit cigarettes with a P636.94-million tax liability from a large-scale seller located in central Luzon.
In a statement, the bureau noted that the illicit cigarettes were found in a factory disguised as a rest house in Cabanatuan City, Nueva Ecija. Around 15 Chinese nationals were arrested during the raid.
“Inside the factory, they discovered illicit cigarettes, machines, fake tax stamps, raw tobacco and other materials used in manufacturing of cigarettes,†the BIR said.
The factory also failed to comply with hygiene standards as the raw tobacco used for manufacturing the cigarettes was placed on the floor.
The erring manufacturers are being investigated for violating the National Internal Revenue Code, particularly for the unlawful possession or removal of articles subject to excise tax without paying the proper tax dues, among others.
Beginning this month, the bureau said it will be conducting regular raids on illegal vape sellers.
The BIR last week seized illegal cigarettes with a tax liability of P107.76 million from a factory-warehouse in Cebu.
The agency seeks to collect P152.4 billion in excise taxes from tobacco products this year. Tobacco accounts for more than 40% of the BIR’s tax take.
As of end-September, BIR collections improved by a 12.73% annual growth to P2.09 trillion, according to Treasury data.
However, this fell short of the government’s P2.12-trillion tax target for the nine-month period. — Beatriz Marie D. Cruz
