BIR starts destroying PHP2.1B worth of contraband cigarettes

Starting Monday, February 24, 2025, the Bureau of Internal Revenue (BIR) began a nationwide operation to destroy PHP2.1 billion worth of confiscated illicit cigarettes across multiple sites.

On Monday in Porac, Pampanga, BIR Commissioner Romeo D. Lumagui Jr. led the incineration and shredding of contraband cigarettes stored at Digama Waste Management Services OPC, with about 13.5 million packs to be destroyed within a week.

The initiative aims to eliminate illegal tobacco products and prevent them from re-entering the market; approximately 14.3 million packs of contraband cigarettes carrying an estimated tax liability of PHP6.4 billion will be destroyed over the course of the month.

Representatives from the Commission on Audit were present during Monday's operation, where at least 20 units of cigarette-making machines were also destroyed by a backhoe, underscoring the BIR’s commitment to enforcing laws against illegal trade and protecting legitimate businesses while promoting public health and safety.

BIR Commissioner Lumagui emphasized that the cigarettes will not be resold or reused after confiscation, inviting media and government agencies to witness the destruction activities.

The tax liability of these illicit cigarettes is around PHP6.4 billion, which could have funded various government projects if collected.

Lumagui urged local government units to remain vigilant about warehouses in their jurisdictions that may be used as factories for illicit cigarette production.