Ilocos Norte to get P530-M share in tobacco excise tax

By Leilanie G. Adriano

Staff reporter

Laoag City—The long wait is almost over for tobacco-growing provinces as the Department of Budget and Management (DBM) has ordered the release of almost P3.4 billion to the local government units of four provinces in northern Philippines.

The amount represents the excise tax share of Virginia tobacco farmers collected in 2012. This is meant to help out farmers in tobacco-growing provinces who had long been waiting for government infrastructure system particularly in the repair of roads and irrigation systems to boost their productivity.

Based on Local Budget Memorandum No. 69 issued by Budget Secretary Florencio B. Abad on Feb. 18, Ilocos Norte is expected to get at least P530.6 million. This is aside from the release of P1.9 billion for Ilocos Sur, P468.7 million for La Union and P432.6 million for Abra.

The amount was based on the number of production volume in 2012.

While the DBM regional office is still waiting for the specific guidelines, Ilocos Norte Governor Ma. Imelda “Imee” R. Marcos said Ilocos farmers have long been waiting for the release of the said amount.

“Hirap na hirap na ang ating farmers. Dalawa at kalahating taon na na zero ang ating mga farmers because we have not been able to provide them anything. And because of the continuing extreme weather condition, so many of the water and other agricultural infrastructure were damaged and it can no longer be depend[dent] upon,” Ms. Marcos said citing the much needed repair and repair of those support facilities for farmers.

Under Republic Act No. RA7171 or the tobacco excise tax law, provincial governments will receive 30 percent of their provinces’ shares, congressional districts will also get 30 percent, while cities and municipalities are the recipients of the remaining 40-percent allocation.

Meanwhile, the share of excise taxes collected for Burley and native tobacco in 2012 is P83.2 million.

The amount will be distributed to 16 provinces namely: Abra, Cagayan, Ilocos Norte, Ilocos Sur, Isabela, Kalinga, La Union, Maguindanao, Misamis Oriental, Mountain Province, North Cotobato, Nueva Viscaya, Occidental Mindoro, Pangasinan, Quirino, and Tarlac.

Under RA 8240, as amended, congressional districts, provinces, and cities and municipalities have respective shares of 80 percent, 10 percent, and also 10 percent from the excise taxes slapped on Burley and native tobacco.

The amended guidelines further states that the share of provinces, cities and municipalities from tobacco excise taxes should only be spent to boost farmers’ self-reliance in the form of agri-industrial, cooperative, infrastructure and livelihood projects, as well as grant of financial and training support.

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