The Bureau of Internal Revenue (BIR) has announced plans to obliterate PHP2.1 billion worth of illegal cigarettes at 12 different locations from February 24 to 28, 2025. This massive operation will see the destruction of 14.3 million packs of illicit cigarettes, which carry a tax liability of PHP6.4 billion, along with the machines used to produce them. The primary site for this destruction will be at Digama Waste Management Services in Porac, Pampanga.
BIR Commissioner Romeo Lumagui Jr. emphasized that this action underscores the agency’s dedication to eliminating illegal trade and safeguarding legitimate enterprises. He stated, “This move is a clear demonstration of our resolve to enforce the law and prevent illegal activities. It follows our extensive raids since 2022 and the subsequent legal actions against those involved in these illicit operations.”
The BIR highlighted that destroying these illegal products is crucial not only for economic reasons but also for public health, as unregulated cigarettes from unknown sources present significant health risks to both smokers and those exposed to secondhand smoke.
By ensuring these products are permanently removed from circulation, the BIR aims to enhance revenue collection, protect the business environment and consumers, and promote public health and safety. In addition to the destruction, the BIR has pursued criminal charges against individuals and corporations engaged in this illegal trade.
Lumagui reiterated, “Destroying these illicit goods is essential for maintaining the integrity of our tax system, protecting public health, and supporting legitimate businesses that comply with tax obligations.”
The Philippine Tobacco Institute (PTI) praised the BIR’s efforts, with a statement applauding the agency and Commissioner Lumagui for their firm stance against illicit trade. The PTI noted that the destruction of these counterfeit and tax-evading products is a strong move to protect the tobacco industry, which significantly contributes to national healthcare and social services through excise taxes.
However, the PTI also called for the establishment of a permanent Illicit Trade Task Force led by the BIR to ensure a more effective and ongoing strategy against the spread of illegal cigarettes and counterfeit tobacco products. They suggested that such a task force would enhance the government’s capacity to dismantle illicit networks and ensure accountability.
The PTI expressed its commitment to supporting government efforts that protect legitimate businesses, ensure fair market practices, and secure public revenues.