The Market Monitor Minding the Nation's Business
The Bureau of Internal Revenue (BIR) is ramping up enforcement operations targeting both emerging and long-standing sources of tax evasion, particularly within the vape and tobacco industries.
In a news release on Thursday, BIR Commissioner Romeo Lumagui Jr. emphasized that this initiative is part of the Marcos administration’s comprehensive effort to tackle illicit trade, prevent revenue loss, and address public health risks posed by unregulated, often toxic, products entering the market without proper inspection or permits.
Lumagui noted that the BIR has been conducting sustained enforcement actions against illicit trade, including the destruction of counterfeit and untaxed cigarettes and the filing of criminal complaints against violators.
In March 2025, the BIR in Pampanga destroyed approximately 14.3 million packs of illicit cigarettes seized from various operations, with an estimated tax liability of PHP6.3 billion. This move is part of the agency’s ongoing efforts to eliminate untaxed products from circulation and deter manufacturers and traders involved in smuggling and tax evasion.
The BIR also recently filed an PHP8.5 billion tax evasion case against Chinese nationals and several corporations following a raid on an illegal cigarette factory and warehouses in San Simon, Pampanga.
Meanwhile, Lumagui highlighted the recent destruction of PHP3.26 billion worth of smuggled vape products as another key milestone in the government’s intensified crackdown on illicit trade. This effort is being led by the BIR and the Bureau of Customs (BOC).
President Ferdinand R. Marcos Jr., who attended the destruction event at South Harbor, commended the BIR for its continued enforcement actions, particularly its warehouse seizures that support the government’s anti-illicit trade campaign.
Lumagui reaffirmed the BIR’s commitment to pursuing those behind illegal trade through both enforcement and prosecution.
“Marami pang illegal na mga pagawaan at pagpapuslit na mga sigarilyo kaya naman talagang nakatutok po tayo dyan… na habulin ang mga nagbebenta ng [illegal na] vape at sigarilyo,” Lumagui said.
He urged the public not to buy illicit cigarette products and to report suspected smuggling or tax evasion activities directly to the BIR.
Meanwhile, legitimate businesses have expressed strong support for the government’s efforts against illicit trade, noting the unfair competition posed by smugglers and illegal traders.
Jesus Arranza, chairman of the Federation of Philippine Industries, said, “smuggling is creating unfair competition for locally produced goods because it erodes the local market [with] cheaper, no value-added tax or undervalued and substandard imported goods displacing the locally produced commodities.”
Industry leaders emphasized that these illicit activities undermine the regulatory environment and disadvantage businesses that comply with tax obligations and legal standards.