P358M fake cigarettes seized in Cavite raids

MANILA, Philippines–In a major crackdown on the illegal cigarette trade, authorities seized 3.12 million packs of counterfeit cigarettes worth P358 million during raids in Dasmarinas City and Indang, Cavite.

The operation, led by the Bureau of Internal Revenue (BIR) and the National Bureau of Investigation (NBI), also resulted in the confiscation of eight illegal cigarette manufacturing and packaging machines.

In the Dasmarinas warehouse, authorities found 1.6 million packs of illegal cigarettes valued at P184.7 million, while the Indang factory contained 1.1 million packs worth P126.6 million.

Another facility in Dasmarinas yielded 408,000 packs valued at P46.76 million.

The estimated total potential revenue loss from these operations is P200 million.

Each production line seized could produce up to 175 packs per minute, amounting to 43.7 million packs annually, resulting in an estimated P2.7 billion in lost excise tax revenues if illegal production had continued.

BIR Regional Director for CABAMIRO, Eric Diesto, said that the initiative aligns with BIR Commissioner Romeo Lumagui Jr.’s directive to intensify the campaign against illegal cigarettes to recover lost billions in national revenue.

He also highlighted the significant health risks and economic harm caused by the illicit cigarette trade.

Jesus Manapat, NBI IPRD Chief, emphasized the collaborative effort’s goal to dismantle organized crime networks involved in illegal cigarette operations, especially those involving foreign nationals.

The seized cigarette brands, including Carnival, HP, Troy, Cannon, Victor Agila, New Orleans, Two Moon, and Fort, were unregistered with the BIR and lacked tax stamps or mandated health warnings.

The authorities are conducting thorough investigations, as 12 Chinese nationals were reportedly involved in the operations, and the properties were found to be leased.

The operation is part of the government’s ongoing efforts to combat the illegal cigarette trade, which leads to annual tax revenue losses of P50 billion to P100 billion.