Illegal Cigarette Factories Dismantled

Tax authorities dismantled two illicit cigarette operations in the Subic Bay Freeport on July 14, reports the Philippine News Agency.

OneSubic Premier Manufacturing Corp. (OPMC) and Hongcim International Corp. were found to be illegally manufacturing various cigarette brands. While OPMC is licensed to manufacture cigarettes, its brands and equipment were not registered with the appropriate agencies, according to the Bureau of Internal Revenue’s Tax Compliance Verification Drive (TCVD) team.

OPMC and Hongcim produce and package foreign-branded cigarettes, including RGD, Baisha and Bruston.

During their raids, authorities found printing machines, paper materials, inks, cigarette filters and grated tobacco leaves, among other paraphernalia. OPMC reportedly could produce 500 cigarette packs per day.

The Philippines lose an estimated PHP100 billion ($1.84 billion) in tax revenues due to fraud each year, according to fiscal authorities.