DBM confirms release of RA 7171 tax share

By Leilanie G. Adriano

Staff reporter

Laoag City—Concerned local government units here can now heave a sigh of relief as the Department of Budget and Management (DBM) confirmed the release of the much awaited tobacco excise tax share due for tobacco-producing municipalities and cities here.

Dingras mayor Erdio Valenzuela reported this following the League of Municipalities of the Philippines meeting in Manila.

During the meeting, Budget Secretary Florencio “Burch” Abad assured tobacco-producing provinces in Luzon to expect the release of the tobacco excise tax share before the end of December.

With the release of the province’s share of the tobacco excise tax, the provincial government of Ilocos Norte hopes that more agriculture infrastructure activities, hybrid rice seeds, fertilizers and other farm inputs will be given 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 are grateful for the appropriation of the tobacco excise tax where the provincial government used most of its tobacco fund to construct farm-to-market roads and rehabilitate agricultural facilities in time for the looming El Niño phenomenon or prolonged drought.

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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