The Bureau of Internal Revenue (BIR) has filed 69 criminal cases for tax evasion valued at P1.8 billion against illicit cigarette traders.
In a statement, the BIR said the cases filed with the Department of Justice yesterday were against illicit cigarette traders who were caught after the first nationwide raid conducted by the BIR last January.
“After the first BIR nationwide raid of illicit cigarette stores and warehouses last January 2023, we are now filing 69 criminal cases against the possessors and owners for tax evasion. This is a warning against all illicit traders. The BIR will not only raid your stores and warehouses, we will also file criminal cases against you. This will not be the last,” BIR Commissioner Romeo Lumagui Jr. said.
The BIR said the national filing of cases against illicit cigarette traders by the tax agency is a first in its history. The cases filed involve 15 revenue regions.
All revenue regions of the BIR participated in the nationwide raid, illicit cigarettes being a nationwide concern of the BIR.
The commissioner assured the taxpaying public of regular raids against all illicit traders with the corresponding criminal cases during his administration.
“The BIR protects the Philippine economy by leveling the playing field. Everybody has to pay taxes. Traders of cigarettes, vape, petroleum and other goods subject to taxes have to register with the BIR and pay their taxes,” Lumagui said.
“Failure to do so would force us to raid your stores and file criminal cases against you. We are in constant surveillance of your businesses. Not only will you have to pay your taxes with penalties and surcharges, but you will also lose your freedom,” he added.
Just last week, the BIR chief said excise tax collections for the first four months of the year fell below target amid the challenges brought by the illicit trade of cigarettes in the country.
Lumagui said while the tax agency had a record-breaking total collection in January to April of this year, it fell short of its excise tax revenue goal.
“The shortfall for our total excise tax (collections) is around 20 percent. A large part of that shortfall is attributable to tobacco,” Lumagui told reporters.
He did not mention the actual collections for the period, but data posted on the BIR website showed that its total excise tax collection goal for the four-month period amounted to P112.37 billion.
Lumagui was also asked which among the illicit goods are causing the most headache, to which he answered: “To be honest, for now it’s really tobacco. The revenue loss for tobacco is huge and also that’s one of the main reasons why we’re not attaining our collection target for excise taxes.”
“It’s really a huge problem, that’s why we’re very serious in our efforts in going after the illicit traders with respect to tobacco,” Lumagui said.
The government is losing P50 billion to P100 billion in revenue annually due to the illicit cigarette trade, he added. – Angela Lorraine Celis, Ashzel Hachero
