The Bureau of Internal Revenue (BIR) has seized P206.6 million worth of counterfeit tax stamps and printing machines in a joint operation with police and local government officials in a factory in Villasis, Pangasinan.
According to BIR Deputy Commissioner Arnel Guballa, the operation has yielded fake internal revenue stamps worth P6.6 million, while the estimated worth of the 20 units of machines seized was placed at P200 million.
“The BIR apprehended and seized several printing, gilding, cutting, stamping, and module machines at a factory located at Barangay Bacag in Villasis, Pangasinan,” Guballa said.
He added that the unregistered equipment was being used to illegally produce and print fake cigarette packing.
Other confiscated materials, such as inks, rollers, cardboards, straps and chemicals used in the illicit activity were accounted for and witnessed by representatives from the Philippine National Police (PNP) and the local government of Villasis.
Criminal complaints were filed against three Chinese nationals before the Office of the Provincial Prosecutor in Villasis for violation of Sections 254, 258 and 265 of the National Internal Tax Code, which pertains to tax evasion, and the manufacture and use of fake tax stamps.
In its aim to stop the entry of unauthorized cigarette-making machines, the Bureau of Customs (BOC) and the General Administration of Customs of China (GACC) signed in August an intergovernmental accord defining the scope and guidelines that will strengthen the cooperation on customs matters between the two countries.
Finance Secretary Carlos Dominguez III issued the order after confirming from BIR Commissioner Caesar Dulay that the illegal tobacco trade has shifted from smuggling cigarettes to producing locally counterfeit brands using undocumented machines acquired mostly from China.