By Leilanie G. Adriano
Staff reporter
LAOAG CITY—Finally, the long
wait is over for Ilocos Norte tobacco farmers as the province’s share in
tobacco excise tax under Republic Act 7171 and RA 8240 for 2013 has been
released.
In an urgent appropriation
ordinance certified as urgent by Ilocos Norte Governor Maria Imelda “Imee” R.
Marcos, members of the Sangguniang Panlalawigan unanimously approved on a total
amount of Php 401,269,600 from the province’s share for various development
undertakings, projects and services here.
Also, another appropriation
ordinance pegged at Php 1,365,526 from the province’s share in burley and
native tobacco excise tax has been approved on the same day for the purchase of
medicines for the effective provision of health services in the entire
province.
Last March, the Department of
Budget and Management (DBM) announced the release of tobacco excise tax shares
of tobacco-producing provinces from the 2013 collection of taxes on locally
manufactured Virginia-type cigarettes, burley and native tobacco.
Of the total Php 10.69
billion tobacco excise tax share, the Batac City government is among the top 10
LGUs with the highest share amounting to Php 178,024, 130. Others include
Candon City, Cabugao, Narvacan, Sta. Cruz, San Juan, Santiago, Sinait and
Magsingal in Ilocos Sur and Balaoan in La Union.
Based on the guidelines, the
amount shall be utilized for projects meant to increase the productivity and
income of farmers.
Under Republic Act No. 7171,
LGUs producing locally manufactured Virginia-type cigarettes are entitled to 15
percent of national tax collections. 30 percent will be divided among the
beneficiary provinces, 40 percent among component cities and municipalities,
and 30 percent to the component cities and municipalities to be computed based
on the volume of tobacco production.
Meanwhile, under Republic Act
No. 8240, LGUs producing burley and native tobacco will also receive a share of
15 percent from excise tax collections in 2013. Of this share, 10 percent will
go to beneficiary provinces and 90 percent to the component cities and
municipalities based on the volume of tobacco production.
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 fair share
in 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, including asphalting of roads and
construction of new bridges.
Also, the previous releases
of the tobacco excise tax were used for the construction of communal irrigation
system, and the acquisition of tobacco barns and purchase of fertilizers and
supplies.
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