SUBIC BAY FREEPORT – The Bureau of Internal Revenue (BIR) padlocked this morning (July 14) the warehouses of two cigarette manufacturing companies here for illegal activities uncovered under the agency’s Tax Compliance and Verification Drive (TCVD).

            No less than BIR Commissioner Romeo D. Lumagui, Jr. led the inspection of the warehouses where dozens of unregistered cigarette manufacturing equipment, as well as cigarette packing and raw materials were found.

            “Na-confirm natin na hindi rehistrado lahat ng makina ng dalawang kumpanyang ito at hindi rin rehistrado ang mga brands na ito,” Lumagui said clarifying that the non-registration is a violation that could draw not only fines, penalties and seizure but imprisonment as well.

            According to the TCVD mission order issued by OIC BIR Regional Director Emmanuel S. Ferrer, Jr., the two companies maintaining the now padlocked warehouses are OneSubic Premier Manufacturing Corporation (OPMC) and Hongcim International Corporation (HIC), sister companies operated by the same group of owners whose names are yet to be released.

            The country is losing around P100 B yearly in taxes due to the unscrupulous practices of manufacturers in the cigarette industry alone, according to Lumagui, denying government much needed funds that could help provide services to the public.

            He said the BIR has been receiving reports that cigarette brands supposedly made for the international market, such as those found at the OPMC and HIC warehouses, namely RGD, Baisha, Liqun, Saat, Furongwang, Nanjing, Shuangxi, Brustun, Azalea and Chunghwa find their way in the local market, skipping the payment of excise tax and other fees.

            Subic Bay News tried to get a reaction on the closures from Chairman and Administrator Jonathan D. Tan of the Subic Bay Metropolitan Authority (SBMA) which administers the Subic Bay Freeport but he has yet to respond as of this writing.

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