BIR seizes illicit cigarettes in Iloilo raid

ESTANCIA, Iloilo — The Bureau of Internal Revenue and the Philippine National Police seized 30,598 packs of suspected illicit cigarettes in an enforcement operation on June 25, 2026, uncovering an estimated tax liability of PHP 25,072,868.17.

The BIR said the operation was conducted through Revenue Region No. 11–Western Visayas and Revenue District Office No. 75–North Iloilo, in coordination with the PNP.

The raid was carried out under a mission order issued by Regional Director Philip Mayo and through the implementation of a search warrant issued by the Regional Trial Court.

Led by Revenue District Officer Crister Marie J. Vallejo, the team served the search warrant at two residential properties owned by Jelyn Brodeth Sotaridona in Barangay Poblacion I and Barangay Lumbia in Estancia, Iloilo.

Authorities confiscated 57 master cases, 180 reams and 298 packs of suspected illicit cigarettes believed to have been intended for distribution without payment of proper excise taxes.

Based on the BIR’s initial computation, the seized products carried an estimated total tax liability of PHP 25,072,868.17, inclusive of applicable taxes and penalties.

During the operation, BIR personnel examined, inventoried and marked the recovered cigarettes.

PNP personnel secured the premises and arrested individuals allegedly found in possession of the contraband.

The confiscated articles were later inventoried, presented before the issuing court in accordance with the Rules of Court and turned over to the BIR for safekeeping pending tax enforcement proceedings.

BIR Commissioner Charlito Martin R. Mendoza said the operation showed the agency’s commitment under its DARES reform agenda to protect government revenues and strengthen enforcement against illicit trade.

“Every pack of illicit cigarettes sold in the market represents revenues that should have funded essential public services. Under our DARES agenda, we will continue to strengthen enforcement, protect the country’s revenue base, and ensure that those who evade excise taxes are held fully accountable under the law,” Commissioner Mendoza said.

Mendoza also stressed the role of interagency coordination in the campaign against illicit trade.

“Our sustained partnership with the Philippine National Police and other law enforcement agencies demonstrates our whole-of-government approach in protecting legitimate businesses and preserving the integrity of our tax system. We will continue to pursue tax violators relentlessly to ensure a fair and level playing field for compliant taxpayers,” he added.

The BIR said it is preparing criminal complaints for violation of Section 263 of the National Internal Revenue Code of 1997, as amended, and other applicable laws against those found responsible for the alleged unlawful possession of illicit excisable articles.

Section 263 covers the unlawful possession or removal of articles subject to excise tax without payment of the required tax, including imported articles subject to excise tax whose taxes have not been paid in accordance with law.

The case adds to the government’s broader enforcement drive against illicit tobacco trade, which authorities have linked to revenue losses and unfair competition against compliant businesses.