Gov’t losing billions in tax revenues from illicit tobacco trade, says BIR chief

Bureau of Internal Revenue

MANILA, Philippines–The government is losing P50 billion to P100 billion in tax revenues from the illicit tobacco trade in the country, Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. said Thursday.

Lumagui made the statement after filing P1.8-billion worth of tax evasion complaints before the Department of Justice (DOJ) against illegal tobacco traders caught during the January 2023 nationwide raid.

“Nasa P50- to P100-billion ang nawawala sa illicit cigarette trades at ang masama pa nyang imbes na napupunta yan sa ating healthcare services na makakatulong sa ating mamamayan, sa imprastraktura, sa mga illicit traders lang napupunta ang mga ito,” he said.

(About P50- to P100-billion [tax revenue] is being lost in illicit cigarette trades, and the unfortunate thing is that instead of going to our healthcare services that could help our people, infrastructure, or benefits for our citizens, these funds are only going to the illicit traders.)

To prevent further loss, Lumagui said government actions need to be consistent.

“Consistent government action is needed to stop this illegal activity, and hopefully, we can reach our target revenue,” Lumawig added.

Known hotspots for fake cigarette brands are Zamboanga and Pampanga.

Lumauig said they are coordinating with various law enforcement agencies to identify possible local manufacturers or warehouses of fake cigarette brands.

“Agresibo kami laban sa illicit cigarette traders…Hopefully, matignan natin kung ano, kung paano yung kalakaran, of course maraming issues na kelangang ayusin iniimbestigahan natin yan and hopefully magawan natin ng paraan,” he said.

(We are aggressively investigating these illicit cigarette traders. We will be able to see what and how things are done. But, of course, many issues need to be addressed. We are investigating those and hopefully finding ways to resolve them.)

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JPV