Ilocos farmers await release of RA 7171 tax share

An Ilocano tobacco farmer displays his wares (IT file photo)

By Leilanie G. Adriano

Staff reporter

LAOAG CITY—As Ilocos Norte farmers are currently engaged in full blast rice farming with the favorable rainy weather, the long awaited release of the tobacco excise tax remains pending in view of the controversial Priority Development Assistance Fund, preventing any further releases which affects the delivery of services due to tobacco farmers.

According to provincial treasurer Josephine Calajate, there was no release yet of the tobacco excise tax, even as farmers expect government assistance in their continuing effort to increase productivity.

While waiting for the province’s share of the tobacco excise tax, Ilocos Norte Governor Ma. Imelda “Imee” R. Marcos said some hybrid rice seeds and fertilizers were initially distributed to farmers to sustain Ilocos Norte’s target as one of the top rice producers in the country.

Since the enactment of Republic Act 7171, or “An Act to Promote the Development of the Farmers in the Virginia Tobacco-Producing Provinces,” in 1992, Ilocos farmers get a share in the appropriation of the tobacco excise tax, which the provincial government used to fund construction of farm-to-market roads and rehabilitate agricultural facilities, including asphalting of roads and construction of new bridges from the period of 2004 and 2005.

Also, the previous releases of the tobacco excise tax in 2006 were used for the construction of the P1.6-million worth of communal irrigation system, and the acquisition of tobacco barns and purchase of fertilizers and supplies at P5.5 million.

Under the law, it mandates that the provinces of Ilocos Sur, La Union, Ilocos Norte, and Abra get 15 percent of the taxes on Virginia type A cigarettes collected by the national government.

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