The Bureau of Internal Revenue (BIR) remains steadfast in its crackdown on cigarette smuggling, ensuring that illicit shipments will not evade enforcement, Commissioner Romeo Lumagui Jr. said.

On Monday, the BIR will oversee the destruction of smuggled cigarettes and manufacturing machines at a waste disposal facility in Porac, Pampanga.

The agency has also filed an ₱8.5-billion tax evasion case against individuals linked to an illegal cigarette factory and three warehouses raided in Bulacan and Valenzuela.

On Daily Tribune’s online program Straight Talk, Lumagui said the filing of the criminal case demonstrates the agency’s firm commitment to collect taxes due from those engaged in illicit trades.

“The tobacco industry is a big problem. There are many leakages there, which is why we are struggling to meet our goal of collecting excise taxes on tobacco products,” Lumagui said.

He noted there were many ways tax evaders could deceive the government.

“Some engage in illegal importation. Some pretend to be locators to appear export-oriented. But in reality, they are manufacturing here, and their goal is not to export but to sell locally. Manufacturers in our economic zones are not subject to excise tax. These products are also sold here. We have already caught some of them. Their brands and machines were not registered,” Lumagui said.

He added, “That’s why we continue to enforce strict measures against such activities. We demonstrate this through raids, cigarette confiscations, and filing cases.”

“And as proof that we do not sell these items, contrary to some concerns, we use them as evidence and destroy them. The destruction is carried out in the presence of the Commission on Audit to ensure transparency and to show the public that they are not being recycled,” Lumagui said.

He stressed that regardless of the size of their operations, unscrupulous people must understand that crime does not pay.

“The BIR will not stop filing criminal cases against large-scale illicit cigarette manufacturers and distributors. Big or small, all operations involving illicit cigarettes in the Philippines are criminal in nature,” Lumagui said.

Shared responsibility

Fighting the illicit tobacco trade is a shared responsibility of the Association of Southeast Asian Nations (ASEAN), according to international experts.

At the recent National Tobacco Administration’s Second International Tobacco Summit, experts underscored the need for a regional and holistic approach to address the growing crisis.

Rodney Van Dooren, regional illicit trade expert for Philip Morris International, noted the cross-border nature of the trade and the importance of cooperation among ASEAN members.

“Local law enforcement in the Philippines is making great strides in shutting down illicit tobacco operations, but this needs constant attention as new threats are always emerging. What I want to emphasize today is that according to trade data and news articles in the Philippines, most non-compliant cigarettes in the Philippines originate from ASEAN countries and India, and from China for non-compliant e-cigarettes,” Van Dooren said.

Van Dooren outlined key recommendations, including compliance with destination market regulations, harmonization of transit country regulations, leveraging international trade agreements, and expanding cooperation beyond customs authorities.

“An export without a corresponding import should trigger international cooperation,” Van Dooren said, calling on ASEAN nations to adopt a shared responsibility framework.

He also emphasized using platforms like the World Customs Organization and World Trade Organization to facilitate enforcement.