First batch of P142-M seized cigarettes destroyed in Davao

MANILA — National government officials led over the weekend the destruction of the first batch of close to 5 million packs of cigarettes worth an estimated P142.44 million, all bearing the brands sold by Mighty Corp. that were seized earlier this year in Mindanao for having counterfeit tax stamps.

Holcim Philippines Geocycle’s “coprocessing” method was used to destroy these cigarettes, which were seized on March 6 this year in a joint operation done by a composite team from the Bureaus of Internal Revenue (BIR) and of Customs (BOC) on a warehouse leased to Mighty Corp. in General Santos City.

According to Holcim Philippines, this method, which ensures the total thermal destruction of waste materials, reduces toxic gas emissions and land and groundwater pollution.

The BIR and BOC have stepped up their joint search and seizure operations of illicit cigarettes and other products in line with President Duterte’s all-out drive against smuggling and tax evasion.

“The decision to destroy these confiscated cigarettes came easily. We imposed sin taxes on these products in part to protect the health of our people. It would be wrong to release these products to the market,” said Finance Secretary Carlos Dominguez III in remarks read for him at the event by Assistant Secretary Kelvin Lee of the Office of the Executive Secretary.

The destruction of the seized cigarettes “is intended to deliver this message: tax evasion does not pay. We will confiscate the offending products and destroy them. No one will profit from the commission of a crime,” said Dominguez.

Some 9,496 mastercases or 4,748,000 packs of cigarettes of Mighty Menthol 100s, Marvels Menthol, Marvels FK and King Full Flavor brands—all manufactured by Mighty Corp.–were destroyed beginning Sunday (November 26) at the Holcim Philippines Incorporated Geocycle compound in Bunawan, Davao City.

According to the BIR, the estimated deficiency excise tax liability of the seized cigarettes, including penalties, would have amounted to P1.39 billion.

The BIR said the warehouse where the seized cigarettes belonged to Sunshine Cornmill Corp. managed by Rosie and Alicia Liang.