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NTA to IN mayors: Times change, accept reality

By Leilanie G. Adriano
Staff Reporter

TIME MOVES on and change is moving along.

This seems to be the message of National Tobacco Administration (NTA) head Edgardo Zaragoza to local chief executives here as he met with them on march 14 at the Sangguniang Panlalawigan Session Hall to explain about the changes on how the local government share on the sin tax law will be utilized effective next year.

“For anything that is new, it is really hard. But we have to accept reality that times change,” Zaragoza told mayors here as he was invited by the League of Municipalities of the Philippines-Ilocos Norte chapter led by its president, Sarrat Mayor Edito Alberto Balintona to shed light on the recent developments on the Implementing Rules and Regulations of RA 10351 or the so-called sin tax reform law, a special law that is unique to the 150 tobacco-producing municipalities in the country.

To ensure the protection of tobacco farmers and sustain the tobacco industry in local communities, the new tax measure mandates that at least 15 percent of the incremental revenues must directly benefit farmers, said Zaragoza which means local government units who have the prerogative to identify the projects beneficial to farmers are now required to submit in specific details to the Department of Budget and Management(DBM) the list of projects and programs to be implemented together with the proposed implementation mechanisms and beneficiaries not later than 15 days after issuance of the local budget memorandum.

Also, the LGUs entitled for this share will now be required to provide quarterly reports on fund utilization status of these projects or accomplishments by posting them in their local websites and in conspicuous places seen by the public.

A proposed menu of possible projects and programs will also be made available to them such as the provision of irrigation systems, testing and soil mapping, post-harvest facilities, reforestation project, conversion of agri-wastes into fuel for drying tobacco, livelihood, capacity-building and medical/welfare assistance to farmers among others.

The sin tax reform law was signed by President Benigno Simeon C. Aquino III on December 20, 2012 and took effect January 1, 2013. The proposed IRR however will take effect January next year.

The law imposes higher taxes on cigarette and alcohol products for the next five years. Specifically, it aims to restructure the existing taxes imposed on alcohol and tobacco goods which are a potential revenue source to fund the government’s Universal Health Care Program to discourage people from engaging in vices.

Balintona said the LGUs are just concerned about their “local autonomy” and the recent development appears like “we are not trusted anymore.”

Zaragoza however underscored that the proposed IRR is only meant to protect the farmers and discourage misuse of these funds to advance the personal interest of politicians.

He likewise clarified that the NTA is just mandated to implement the IRR provisions of the sin tax reform law signed by an inter-government agency composed of the Department of Health, Department of Agriculture, Department of Finance and the Bureau of Internal Revenue.

“If we use the funds wisely, there’s no problem about it. We are not your enemies, we were just mandated to implement it,” Zaragoza reiterated after the consultative meeting attended by mayors, local legislators and budget officers here.  


After the conduct of consultative meeting, the NTA administrator said that a summit will be launch as soon as the IRR will be finalized.

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