By Leilanie G.
Adriano
Staff Reporter
Tobacco farmers here in
Ilocos Norte need not to expect much livelihood assistance and farm-to-market
roads improvement as the province’s share in the tobacco excise tax has
decreased by almost P80 million, according to the provincial treasury office.
Under RA
7171, or the Tobacco Excise Tax law, tobacco-producing provinces get 15
percent of the excise taxes on locally manufactured Virginia-type cigarettes.
Last year, Ilocos
Norte received approximately P235 million from tobacco excise tax but this has
been reduced to only P156 million this year, provincial treasurer Josephine
Calajate told members of the Sangguniang Panlalawigan during the first day of
deliberation on the proposed budget of each department subject for approval by
the Ilocos Norte board.
According to
Calajate, the tremendous decrease of the province’s share in tobacco excise tax
would greatly affect the farmers in terms of giving them livelihood assistance
and improvement of farm to market roads.
She said the
report on low production and the implementation of the sin tax law may have
affected the tobacco industry hence, the decreased share in RA 7171 share of
all tobacco producing provinces.
However, with
proper financial management and balance of resources, Calajate hopes farmers
will have their fair share in receiving what is due to them.
“I hope the
tobacco excise tax will not be again decreased by next year so as not to affect
the financial status of the province,” Calajate said.
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