A cache of 700,000 counterfeit excise tax stamps led authorities to what the Bureau of Internal Revenue (BIR) described as an organized operation to manufacture and distribute illegal cigarettes in Pampanga.
The discovery was made during a two-stage enforcement action on February 11 and 16, carried out by BIR Revenue Region No. 4 in coordination with the Philippine National Police-Criminal Investigation and Detection Group.
The first raid, conducted at a warehouse in Barangay Panipuan, City of San Fernando, uncovered cigarette-making equipment and raw materials valued at about ₱147.6 million. More significantly, authorities recovered fake excise tax stamps estimated to be worth ₱48.62 million.
Using the BIR’s Excise Tax Stamp Authentication System, investigators confirmed the stamps were counterfeit and intended for use in illegal cigarette production, indicating a structured attempt to bypass excise tax laws.
Five days later, enforcement teams moved to an industrial park in San Simon, Pampanga, where they seized 1,013 master cases of illicit cigarettes, equivalent to about 506,500 packs. The BIR placed the total tax liability of the confiscated goods at ₱412.36 million, covering excise tax, value-added tax, surcharges, interest, administrative penalties, and inspection fees.
Combined, the operations prevented the potential loss of an estimated ₱460.98 million in government revenue.
Commissioner of Internal Revenue Atty. Charlito Martin R. Mendoza said the agency will continue pursuing groups involved in illicit tobacco trade.
“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,” Mendoza said.
Authorities are now working to identify the warehouse owners and other individuals behind the operation. Criminal and tax charges are being prepared under the National Internal Revenue Code and other applicable laws as the investigation continues.
