NTA assures ‘sin tax’ revenues will directly benefit farmers

Ilocano tobacco farmer (IT file photo)

By Leilanie G. Adriano

Staff Reporter

LAOAG CITY—As the national government expanded the number of beneficiaries of the reformed excise tax law, the National Tobacco Administration (NTA) assured tobacco growers here that the biggest chunk would directly benefit farmers in this tobacco-growing region.

NTA Administrator Edgardo D. Zaragoza in a recent visit to the province said almost all local government units here had already submitted proposed list of projects based on the menu set in the Implementing Rules and Regulations (IRR) of the reformed Tobacco Excise Tax Law.

“They (LGUs) have already submitted the menu and we are currently reviewing them based on the needs of our farmers,” Zaragoza said during a press conference held in Laoag City on June 25.

On top of the list based on farmers’ needs include the purchase of farm equipment, curing barns and irrigation facilities.

According to Zaragoza, they are now on the third and final revision of the IRR, which takes effect on 2015.

Republic Act No. 10351 or the new sin tax law restructures the existing taxes imposed on alcohol and tobacco goods.

Under the new rules and regulations in the release and utilization of fund, the law has given more transparency in the implementation of programs and projects, giving farmers and other industry stakeholders the chance to provide their inputs in the preparation of the master plan for the development of the tobacco industry.

The LGU programs and projects to be funded pursuant to the new law shall now be incorporated in the General Appropriations Act.

Section 3, Rule VIII of the said IRR mandates the Department of Budget and Management, Department of Agriculture and the tobacco agency to institutionalize the mechanism to strictly monitor the utilization of the fund allocation to LGUs in terms of benefits derived in accomplishing the purpose of the RA 7171 and RA 8240.

Aside from the 16 LGUs of northern Luzon, known as the tobacco-growing region, sin tax revenues shall now be expanded to other 65 LGUs across the country.

The support however will come in the form of the universal health programs and projects, not on internal revenue allotment (IRA).

Tobacco, as an international industry accounts for about P80 billion in taxes this year and it is expected to increase up to P100 billion next year.

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