The Bureau of Internal Revenue (BIR) yesterday said four companies illegally manufacturing cigarettes in Central Luzon are facing P8 billion in tax liabilities, one of the biggest hauls of the agency.
BIR commissioner Romeo Lumagui Jr. said at the Bagong Pilipinas television program on PTV-4 the four Central Luzon-based companies are also facing penalties while their officials could face imprisonment for multiple violations.
Lumagui said raids conducted recently yielded millions of pesos worth of cigarettes and unregistered machineries.
He did not identify the companies but said these represent themselves as exporters
Lumagui said manufacturers of cigarettes are required to register their machineries as well as the and brands to be produced. If these cigarettes are sold locally, they are slapped excise taxes.
He said penalties can go up to P50 million in penalties and up to 20 years imprisonment term of up to 20 years per offense, aside from the P8 billion in taxes they need to pay.
“BIR is focused on cigarettes because the product has been included in the (law) on agriculture smuggling,” referring to Republic Act No. 12022 or the Anti-Agricultural Economic Sabotage Act.
“We lose taxes and revenues which could have helped fund health programs as part of what we collect from the excise taxes go to healthcare services. We also want to protect farmers and legitimate businesses,” Lumagui said.
Last month, BIR, in a statement, said it conducted a raid in two warehouses located in Quezon City and Caloocan City which led to the discovery of illicit cigarettes with total estimated tax liabilities of P838 million.
Specifically, the BIR seized 1.31 million packs of counterfeit and illicit cigarettes.
“This BIR raid of two illicit cigarette warehouses in Quezon and Caloocan City shows our commitment to fight illicit trade,” BIR commissioner Romeo Lumagui Jr. said.
“The BIR welcomes all informants, whether from the public or private sector, who can provide information on possible targets,” he added
The illicit traders responsible for the two warehouses violated several sections of the National Internal Revenue Code, the BIR said.
