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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