Bureau of Internal Revenue Intensifies Crackdown on Illicit Tobacco Trade in Pampanga
The Bureau of Internal Revenue (BIR) has announced a significant enforcement success in its nationwide campaign against illegal tobacco production and tax evasion. On Friday, February 20, 2026, the BIR revealed that sustained operations in Pampanga this month have maintained an estimated PHP460.98 million in government revenue, effectively disrupting illicit supply chains and preventing substantial revenue leakage.
Major Raids Uncover Counterfeit Stamps and Manufacturing Equipment
In a coordinated effort with the Philippine National Police–Criminal Investigation and Detection Group, BIR Regional Director Saripoden Bantog led operations across Central Luzon. On February 11, enforcement teams conducted a raid on a warehouse located in Barangay Panipuan, City of San Fernando, Pampanga. During this operation, authorities seized cigarette manufacturing equipment and raw materials valued at approximately PHP147.6 million.
Additionally, the BIR recovered around 700,000 counterfeit excise tax stamps, with an estimated worth of PHP48.62 million. Verification through the BIR's Excise Tax Stamp Authentication System confirmed that these stamps were intended for use in illegal cigarette production and distribution, highlighting sophisticated methods employed by illicit operators.
Follow-Up Operations Yield Further Seizures and Tax Liability Assessments
Subsequent enforcement actions on February 16 targeted the Golden Sun 999 Industrial Park in San Simon, Pampanga. This follow-up operation resulted in the seizure of 1,013 master cases of illicit cigarettes, equivalent to about 506,500 packs. The BIR has calculated the total tax liability from these seizures at PHP412.36 million, which includes excise tax, value-added tax, surcharges, interest, administrative penalties, and inspection fees.
Commissioner of Internal Revenue Charlito Martin Mendoza emphasized the bureau's commitment to pursuing individuals engaged in illicit trade. "We will continue our relentless efforts to protect lawful revenue collection and ensure that funds for essential public services are secured," Mendoza stated, underscoring the importance of these operations for national fiscal health.
Ongoing Investigations and Legal Actions
The BIR has confirmed that investigations are actively ongoing to identify warehouse owners and other responsible parties involved in these illegal activities. Criminal and tax charges are being prepared under the National Internal Revenue Code and other applicable laws, signaling a robust legal response to tax evasion and illicit manufacturing.
This enforcement drive is part of a broader government initiative to combat illegal tobacco production, which not only undermines public revenue but also poses risks to consumer safety and market integrity. The seizures in Pampanga serve as a stark warning to those involved in similar unlawful enterprises across the country.
