IN share on tobacco excise tax down by P80-M

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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