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Tobacco-producing LGUs to get P29.5 billion in excise tax shares

By: - Reporter / @bendeveraINQ
/ 04:55 PM October 10, 2017

The Department of Budget and Management has ordered the release of a total of P29.5 billion to tobacco-producing provinces, cities and towns as part of their share from excise taxes collected in 2011, 2014 and 2015.

Local Budget Memorandum No. 76 signed by Budget Secretary Benjamin E. Diokno on Oct. 6 allowed local government units (LGUs) that produce Virginia-type cigarettes to get their P11.1-billion share from excise tax collections in 2014, while those producing Burley and native tobacco will receive P1.9 billion also from the 2014 take.

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Another P169.6 million was allocated to LGUs that produce Burley and native tobacco from excise tax collections in 2011.

The 2011 and 2014 shares of LGUs were provided for under the 2016 national budget, the DBM said.

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As for 2015 excise tax collections, Virginia-type producers will get P13.9 billion, while Burley and native tobacco-producing LGUs will receive P2.5 billion.

The LGU shares from the excise tax take in 2015 were covered by the 2017 budget.

Under Republic Act (RA) No. 7171, LGUs that manufacture Virginia-type cigarettes get a 15-percent share of national tax collections, of which provincial governments will receive 30 percent; congressional districts will also get 30 percent; while cities and municipalities are the recipients of the remaining 40 percent.

But since the Supreme Court had declared legislators’ so-called “pork barrel” as well as interventions in budget implementation as unconstitutional—hence, prohibited—the releases from collections coming from Virginia tobacco will be distributed only to provincial, city and municipal governments.

Separately, RA 8240 mandated provinces as well as cities and municipalities to receive their respective shares of 10 percent and 90 percent from 15 percent of total excise taxes collected from Burley and native tobacco. /je

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TAGS: Budget, cigarette, DBM, excise tax shares, LGU, production, tobacco
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