Bataan municipality issues order to curb illicit cigarette trade

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February 21, 2026 | 5:15pm

MARIVELES, Bataan — The local government of Mariveles has issued an executive order to curb the proliferation of contraband cigarettes here, as national authorities cracked down on the illicit cigarette trade that costs the government billions of pesos in lost tax revenue annually.

Mayor Ace Jello Concepcion issued the EO early this month, noting that Mariveles “faces unique vulnerabilities to smuggling activities that require heightened vigilance and coordinated enforcement.”

Mariveles hosts a strategically important port that serves as one of the major gateways for maritime trade and logistics in Central Luzon.

Concepcion said the proliferation of contraband and smuggled cigarettes in the municipality “undermines legitimate business operations, deprives the government of lawful tax revenues, poses serious health risks to consumers, and contributes to organized criminal activities.”

The order created the Mariveles Anti-Contraband Task Force (MACTF), headed by Concepcion and composed of members from various enforcement and regulating bodies in the municipality, as the central coordinating body for enforcement operations. 

The task force is mandated, among others, to conduct regular inspections of retail establishments, warehouses, and other premises where cigarettes are sold or stored; monitor coastal areas, ports, and entry points for potential smuggling activities; coordinate with national agencies like the Philippine National Police, Bureau of Customs (BOC), Bureau of Internal Revenue (BIR), and Philippine Coast Guard for law enforcement; and conduct a public awareness campaign about the risks of contraband cigarettes.

The EO also required business establishments selling cigarettes in the municipality to maintain records of cigarette suppliers; ensure that all cigarette products sold bear proper tax stamps as required by the BIR; and prominently display notices stating that they only sell tax-paid cigarette products.

The Mariveles order explicitly framed illicit cigarette trade as a revenue crime and directed agencies to quantify losses and pursue appropriate legal and administrative action. It also requires coordinated monitoring of high-risk areas such as ports, warehouses, and distribution routes.

The local framework, which could serve as an operational model that other local governments may adopt to strengthen local anti-smuggling efforts, came at the heels of a national crackdown launched early this year to address illicit cigarette trade that costs the government from P30 billion to P60 billion annually in unpaid taxes. 

Authorities also pointed out that the availability of cheaper, untaxed products harms legitimate businesses and local tobacco farmers.

The BOC and the Department of the Interior and Local Government had since then reportedly seized some P275 million worth of illicit tobacco products, machinery, and raw materials, and shut four illegal cigarette factories in Pampanga and one in Tanza, Cavite.

DILG Secretary Jonvic Remulla said the agency is eyeing a total of 10 major raids of illegal factories and is preparing charges against suspects for violation of the Customs Modernization and Tariff Act, as well as the Anti-Agricultural Economic Sabotage Act.