The Bureau of Internal Revenue (BIR) announced Saturday that recent enforcement operations in Pampanga have protected an estimated P460.98 million in potential government revenue. The operations, conducted February 11 and 16, 2026, are part of a broader national campaign targeting tax evasion within the tobacco industry.
Disrupting Illicit Supply Chains
The BIR stated that the operations, led by Revenue Region No. 4 (Central Luzon) in coordination with the Philippine National Police–Criminal Investigation and Detection Group (PNP-CIDG), represent a strategic shift toward disrupting the supply chains of manufacturers evading taxes. The agency aims to prevent revenue leakage and strengthen compliance with excise tax laws.
Raids Uncover Manufacturing Equipment and Counterfeit Stamps
The initial phase of the enforcement effort on February 11 targeted the Chamian Commercial Warehouse in the City of San Fernando, Pampanga. Authorities seized cigarette manufacturing equipment and raw materials valued at approximately P147.6 million. Around 700,000 counterfeit excise tax stamps, with a potential tax loss of P48.62 million, were as well recovered.
Further operations on February 16 at Golden Sun 999 Industrial Park in San Simon, Pampanga, resulted in the confiscation of 1,013 master cases of illicit cigarettes – roughly 506,500 packs. The BIR calculated the total tax liability for these seized goods at P412.36 million, including excise tax, value-added tax, and associated penalties.
Protecting Public Funds and Fair Competition
BIR Commissioner Charlito Martin R. Mendoza emphasized the importance of sustained enforcement against illicit tobacco trade. He stated, “We will relentlessly pursue those who seek to undermine lawful revenue collection. Our enforcement actions safeguard government resources and ensure that funds intended for essential public services are protected from illicit trade.”
The BIR also noted that intensified enforcement protects legitimate manufacturers and compliant taxpayers by addressing unfair competition from illicit traders. Follow-up investigations are underway to identify those responsible, with criminal and tax charges being prepared.
Frequently Asked Questions
What prompted these operations?
These operations are part of a wider national anti-tax evasion campaign, specifically targeting the illicit tobacco trade.
Where did the operations take place?
The operations took place at Chamian Commercial Warehouse in the City of San Fernando, Pampanga, and at Golden Sun 999 Industrial Park in San Simon, Pampanga.
What is the potential financial impact of these operations?
The BIR estimates that these operations have protected an estimated P460.98 million in potential government revenues.
As the BIR continues its nationwide operations, it remains to be seen whether further significant seizures will be made and whether these efforts will lead to a sustained reduction in illicit tobacco activity.
