By CESAR JOLITO
The Bureau of Internal Revenue (BIR) has confirmed it cannot file tax violation charges against suspects arrested in recent raids on warehouses where alleged smuggled cigarettes were discovered in Bacolod City and Negros Occidental’s Bago City due to the agency’s absence during the police operations.
In an interview, Atty. Roev Bryl Sobrejuanite, chief of the legal division of BIR Regional Revenue District 12, said that under Section 15 of the tax code, the BIR must be present during search, seizure and arrest operations to pursue such cases, as prosecutors require their participation in the enforcement action.
Sobrejuanite explained that under Section 263 of the National Internal Revenue Code, the possession, transport and sale of illicit cigarettes — those without paid excise taxes — constitute violations of the tax law.
Cigarettes are also deemed illicit if they lack official strip stamps or bear counterfeit ones.
However, Sobrejuanite noted that the BIR was not involved in the surveillance and raid conducted by police in the two warehouses.
Despite this, the Philippine National Police (PNP) may still pursue charges against the suspects for violations of Department of Health regulations on graphic health warnings, as well as Republic Act 12022 or the Anti-Agricultural Economic Sabotage Act.
Sobrejuanite added that economic sabotage charges may apply if the value of the seized illicit products exceeds P10 million.
He emphasized that stronger coordination between the BIR and PNP would make enforcement efforts against smuggled cigarettes more effective.
Authorities emphasized that illegal cigarette operations not only result in significant tax losses for the government but also pose health risks to consumers due to the absence of quality control and safety standards.
Charges are now being prepared against the arrested suspects for violations of tax laws, business regulations, and other criminal statutes, as officials vowed to sustain operations against similar illegal activities.
The crackdown was carried out by the Bacolod City Police Office, Business Permits and Licensing Office, and Police Regional Office in the Negros Island Region as part of intensified efforts to curb illegal trade in the region.
On Tuesday, April 21, authorities arrested several Chinese nationals identified as Fugong Jiang, Wu Jian Qun, Xu Ke, Li Hong, Ye Jun, A Yac, Tan Jing, Wu Shaobin, and Eron Chen during the operation at a warehouse in Bago City’s Barangay Calumangan.
However, another suspect, Pan Zongxing, managed to escape.
Also arrested were Filipino nationals identified as Lino Pasculado, Jasper John Bais, Romeo Mahinay, and a 16-year-old minor.
The minor has been turned over to social welfare authorities in accordance with child protection laws.
The raid was launched following validated intelligence reports about an unlicensed cigarette production hub operating in Bago City’s Barangay Calumangan.
The facility, located inside a former rice mill compound registered under Besañes Trading Corporation Rice Retailer/Wholesaler, was found to be fully operational despite lacking the required permits and government clearances.
Operatives recovered heavy equipment used for cigarette production, including three loading machines and three packaging units, as well as various manufacturing tools and raw materials, indicating large-scale operations.
Authorities are still conducting a full inventory to determine the total value and production capacity of the seized items.
Follow-up operations led authorities to a warehouse in Bacolod City’s Barangay Alijis, believed to be connected to the Bago facility.
Thousands of boxes of raw materials and packaging supplies for illicit cigarettes were discovered, with initial estimates placing their value at several million pesos./CJ, WDJ