BIR signals major push against smuggling of farm commodities

THE Bureau of Internal Revenue (BIR) said on Monday that it will deploy as many personnel as needed to deter the smuggling of farm commodities.

“The BIR will deploy all revenuers needed to fully enforce the Anti-Agricultural Economic Sabotage Act,” BIR Commissioner Romeo D. Lumagui, Jr. said in a statement.

The recently signed law, which went into the books as Republic Act (RA) No. 12022, expanded the definition of agricultural products to cover livestock, aquatic products, and tobacco.

Under the law, selling tobacco products at 30% below the daily price index will be deemed an act of smuggling.

The law covers both unmanufactured and manufactured tobacco products. It will also include cigarettes, cigars, heated tobacco products, vape, or any form of tobacco product for smoking, heating, puffing, oral or nasal use.

For 2024, the government is expected to forego P33.7 billion in revenue due to the illicit tobacco trade, Mr. Lumagui told a forum last year.

RA 12022 also classifies the smuggling and hoarding of agricultural products as economic sabotage if the value of goods is over P10 million.

The possession of smuggled goods in a warehouse, vessel, vehicle, or other storage area also counts as economic sabotage under the law.

Violators could face a fine worth five times the value of the smuggled or hoarded goods, and face life imprisonment.

The law also empowers BoC to act against corporations or entities involved in acts of economic sabotage.

Finance Secretary Ralph G. Recto last week said the new law will help boost the government’s revenue collections.

“Through a stronger and stricter crackdown on these offenders, we protect our people’s access to affordable goods and boost our revenue collections, which will allow the government to provide more essential public services to Filipinos,” he said in a statement. — Beatriz Marie D. Cruz