Government steps up drive vs tax evasion, smuggling in 2018

MANILA, Philippines — The government stepped up its campaign against smuggling and tax evasion in 2018 through the combined efforts of the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR), according to the Department of Finance (DOF).

In a statement released over the weekend, the DOF said the BIR has been able to spearhead several raids on warehouses storing counterfeit cigarette brands this year, while the BOC was able to intercept undocumented shipments of rice, steel products, luxury cars and assorted goods.

The DOF said the BIR as of November has seized 5,227 mastercases of fake cigarettes bearing various brands and affixed with counterfeit tax stamps.

The agency this year also incinerated over 230,000 mastercases or over 115 million seized cigarette packs, the DOF said.

The BOC, for its part, has confiscated P9.271 billion worth of smuggled goods from various ports nationwide as of Dec. 19, according to the DOF.

In line with this, the BOC filed 68 cases against suspected smugglers before the Department of Justice (DOJ) and revoked, suspended and cancelled the customs accreditation of 126 importers and 15 customs brokers.

The bureau has also donated 374 bags of rice to the Department of Social Welfare and Development (DWSD) to augment the government’s disaster relief efforts for typhoon victims this year.

To improve the government’s campaign against illicit tobacco products, Finance Secretary Carlos Dominguez earlier instructed the BIR and the BOC to track down manufacturers of counterfeit cigarettes and their possible cohorts in government who allowed the entry of unlicensed cigarette-making machines into the country.

Dominguez also directed the agencies to coordinate with their counterparts in the countries where these machines originated from and seek their cooperation in finding the people behind the smuggling of these machines to the Philippines.

He also ordered the BOC and BIR to disable the confiscated machines so that they could no longer be used for illicit operations. 

Meanwhile, Dominguez also led efforts to ensure the acquisition of four patrol vessels with the assistance of the French government to help strengthen the country’s border patrol.

The finance chief also called for the close coordination between the Philippine Coast Guard and the BOC in the enforcement of laws pertaining to border control and prevention of smuggling.

Dominguez said eradicating smuggling is crucial, noting that billions of pesos in revenues are lost annually due to this illicit activity. He said these revenues could have been enough to support the Duterte administration’s ambitious infrastructure program.