BIR destroys P2.1B worth of illicit cigarettes in Pampanga
A backhoe destroys the cigarette-making machines inside the Digama Waste Management Services OPC compound in Porac, Pampanga on Monday, Feb. 24. (Photo by Jun A. Malig)
PORAC, Pampanga — The Bureau of Internal Revenue (BIR) on Monday destroyed about P2.1 billion worth of illicit cigarettes and several cigarette-making machines at a waste management facility in this town..
BIR Commissioner Romeo Lumagui Jr. led the incineration and shredding of the confiscated cigarettes, which had been seized from various parts of Luzon since 2023.
In an interview, Lumagui said a significant portion of the illicit cigarettes stored at the warehouses of Digama Waste Management Services OPC came from the Caloocan Revenue Region 5, which covers Caloocan, Malabon, Navotas, Valenzuela, and Bulacan.
“We are first, destroying the cigarettes confiscated during our raid in Bulacan and Valenzuela late last year,” he said.
About 13.5 million packs of various brands of illicit cigarettes stored at the facility would be destroyed within a week, the Inquirer learned.
Article continues after this advertisementDigama president Robert Gaza said their newly acquired incinerator is more efficient than the company’s shredding machines, as it could reduce each rim or pack of cigarettes to ash more quickly.
Article continues after this advertisementThe BIR has designated Digama as its primary destruction hub in Luzon.
From Feb. 24 to 28, all nine revenue regions of the BIR across the country would simultaneously destroy the illicit cigarettes confiscated within their jurisdictions, Lumagui said.
Through these coordinated efforts, the BIR aims to demonstrate its commitment to ensuring that illegally manufactured and sold cigarettes would not re-enter the market.
“We want to show that our campaign against illicit cigarettes is a complete process—from raid and confiscation to the filing of charges and now the destruction of the seized products—to dispel any doubts about where the confiscated cigarettes end up,” Lumagui said.
He assured the public that all illicit cigarettes in BIR’s possession nationwide would be destroyed by February 28, with BIR personnel stationed 24/7 at waste management centers to oversee the destruction process.
Representatives from the Commission on Audit were present during the destruction activity.
The government estimates that it has lost about P6.4 billion in potential tax revenue from the illicit cigarettes seized since 2023.
In a statement distributed to the media on Monday, the BIR said the destruction of illicit cigarettes not only prevents tax losses but also addresses the serious public health risks posed by cigarettes from unknown sources.
The agency also confirmed that multiple criminal cases had been filed against individuals and corporations involved in the illegal trade, including Chinese nationals.
“The destruction of illicit goods is a crucial step in maintaining the integrity of our revenue collection, protecting public health, and safeguarding the interests of legitimate businesses that properly declare and pay the correct taxes,” the statement read.
At least 20 units of cigarette-making machines were also destroyed by a backhoe at the Digama compound during Monday’s operation. INQ
READ: Man nabbed for selling cigarettes to minor in Pampanga
