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BIR cracks down again vs illicit cigarette and alcohol trade

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Jacque Manabat, ABS-CBN News

MANILA - The Bureau of Internal Revenue (BIR) again conducted simultaneous nationwide raids against the illicit cigarette and alcohol trade.The nationwide crackdown included Cabanatuan City in Nueva Ecija, Talisay in Camarines Norte, Camarines Sur, Bacolod City, Davao City, and cities in Metro Manila.In Makati, the bureau confiscated several bottles of alcohol and boxes of cigarettes worth millions of pesos, with most products bearing Chinese characters. All of the products are missing the excise tax stamp - a seal usually found around bottle caps and opening flaps of cigarettes. These stamps are proof that the products were imported and taxed.One of the two stores, selling expensive wine, had the excise stamp on the side of the bottle. The Bureau of Internal Revenue speculated that the intention to put the stamps improperly was to &#x27;recycle&#x27; the seals for other bottles.“Kaya sa ibabaw ilalagay para kapag binuksan ang alak ay hindi mare-recyle ang stamp na nabibili. Ayaw man natin sabihin na sinasadya yan pero malinaw sa aming regulations na dapat sa ibabaw yan nilalagay sa gilid para di magamit ulit,” BIR Commissioner Romeo Lumagui Jr.The confiscated items will be used for evidence for case filing and eventually destroyed.In May, the bureau filed sixty-nine tax evasion charges against illicit traders caught during nationwide simultaneous raids conducted in January. These stores were caught selling untaxed, fake, and smuggled cigarettes. The penalties and fines amount to P1.8 billion.<div>PATTERN</div>Commissioner Lumagui said they have observed that the stores, selling untaxed imported products, carry similar brands. The bureau is bent on zeroing in on the sources of this illicit trade. Manufacturers and warehouses of these products are also on the bureau&#x27;s radar.“Marami common sa ibat ibang parte ng Pilipinas. Pare-pareho ang brand na nabebenta at kumakalat kaya ang pinupuntirya natin ay yung source ng nagbebenta ng produkto na ito at titignan natin yan at yan ang susunod nating hahabulin.” Lumagui said.“Naghahanap kami ng warehouses nagkakaroon tayo ngimbestigasyon saan ba nagiimbak ang retailers na nagbebenta ng produktong ito.” Lumagui said.<div>LOW EXCISE TAX COLLECTION</div>The bureau noted that sin tax collection had been weak for several years.Lumagui estimated that the agency is 20 percent short of this year&#x27;s excise tax collection goal. The agency also estimated that the government is losing P50 to P100 billion a year in tax revenues from illicit trade. “Itong excise tax ang isa sa pinakamababa dahil laganap at bilyon ang nawawala satin ditio… Nandyan yan sa ating batas na a part of nakokokolekta sa excise tax ay napupunta sa Health Care system kaya naman nagpupursige rin tayo na makolekta ang excise tax.” Lumagui Jr said.The bureau collected P261.64 billion in excise tax from &quot;sin products&quot; from January to December 2022, or two percent lower than P266.61 billion in 2021. The full-year sin tax revenue was also below 16 percent against the P313.2 billion goal for 2022.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/18/23/cigarette-smuggling-keeping-bir-from-hitting-revenue-target">Cigarette smuggling keeping BIR from hitting revenue target</a></li>	<li><a href="https://news.abs-cbn.com/business/05/25/23/bir-files-69-criminal-cases-vs-illegal-cigarette-trader">BIR files 69 criminal cases vs illegal cigarette trader</a></li>	<li><a href="https://news.abs-cbn.com/business/05/18/23/onions-among-most-smuggled-products-in-ph-pnp">Onions among most smuggled products in PH: PNP</a></li></ul>

The nationwide crackdown included Cabanatuan City in Nueva Ecija, Talisay in Camarines Norte, Camarines Sur, Bacolod City, Davao City, and cities in Metro Manila.

BIR cracks down again vs illicit cigarette and alcohol trade

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BIR cracks down again vs illicit cigarette and alcohol trade

Jacque Manabat,

ABS-CBN News

Published Jul 13, 2023 05:29 PM PHT

|

Updated Jul 13, 2023 06:19 PM PHT

Read More:

BIR

Cigarette

Tobacco

Alcohol

Illicit Trade

Sin Tax

Lumagui

illicit trade

cigarette smuggling

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