The Bureau of Internal Revenue (BIR) has declared full support in enforcing the recently signed Anti-Agricultural Economic Sabotage Act and has committed to deploy all the necessary personnel for the implementation of the measure.

In a statement yesterday, the BIR said Republic Act (R.A.) No. 12022 will be added to the different enforcement activities of the agency against illicit trade.

“The BIR will continue its fight against agricultural smuggling, whether that involve(s) the smuggling of tobacco, cigarettes, vape or other agricultural products. We have conducted nationwide raids. We have raided festivals. We raided warehouses even at night. We will not stop until we eradicate all forms of illicit trade,” said BIR commissioner Romeo Lumagui Jr. 

R.A. 12022 provides that smuggled tobacco includes tobacco that is not compliant with the prevailing processes and requirements of the BIR.

This covers unmanufactured tobacco and manufactured tobacco. The latter refers to cigarettes, cigars, heated tobacco products, vape or any product containing tobacco that is intended for smoking, heating, puffing, oral or nasal use.

The sale of tobacco products at a price 30 percent below the daily price index raises the presumption that acts of smuggling have been committed. 

The mere possession of smuggled agricultural products in any warehouse, vessel, transport and other storage areas will be considered as prima facie evidence of agricultural smuggling as economic sabotage. 

The penalty to be imposed against a person who commits agricultural smuggling as economic sabotage could reach that of life imprisonment and a fine five times the value of the agricultural product. It is a non-bailable offense.

“The BIR will deploy all revenuers needed to fully enforce the Anti-Agricultural Economic Sabotage Act. The BIR supports the stance of the national government in protecting the agriculture sector,” Lumagui said.

He added:” Agricultural smuggling as economic sabotage is an attack against our financial system. It destroys the livelihood of farmers. It contributes to the higher price of basic commodities. It is tax evasion of the highest order.”