LGUs to get share of gov’t tobacco tax take worth P3.4B

The Department of Budget and Management (DBM) has ordered the release of almost P3.4 billion to the local government units of four provinces. The amount represented their share of the excise taxes collected in 2012 for the Virginia-type tobacco grown in their respective areas.

Local Budget Memorandum No. 69 issued by Budget Secretary Florencio B. Abad last Feb. 18 ordered the release of P1.9 billion to the local government units (LGUs) in Ilocos Sur, P530.6 million in Ilocos Norte, P468.7 million in La Union, and P432.6 million in Abra, chargea ble against the continuing appropriations of the 2014 budget.

The shares of the LGUs were based on their respective provinces’ production volume in 2012: Ilocos Sur accounted for 57.4 percent of the total 40.5 million kilos of tobacco; Ilocos Norte, 15.8 percent; La Union, 13.9 percent; and Abra, 12.9 percent.

Under Republic Act (RA) No. 7171, 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 from excise taxes on Virginia-type cigarettes.

But since the Supreme Court had declared legislators’ so-called “pork barrel” as well as interventions in budget implementation to be unconstitutional, the DBM said the releases from the 2012 collections coming from Virginia tobacco should be infused only to the provincial, city and municipal governments.

As for the share of excise taxes collected from Burley and native tobacco in 2012, a total of P83.2 million will be distributed to 16 provinces: Abra, Cagayan, Ilocos Norte, Ilocos Sur, Isabela, Kalinga, La Union, Maguindanao, Misamis Oriental, Mountain Province, North Cotabato, Nueva Viscaya, Occidental Mindoro, Pangasinan, Quirino, and Tarlac.

The amount is also chargeable against the continuing appropriations of the 2014 budget.

The biggest recipient of the provinces’ shares from Burley and native tobacco excise tax collections last 2012 is Isabela province, which will get P34.3 million for producing 10 million kilos or 41.2 percent of the total volume of 24.3 million kilos that year.

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 DBM said this tranche of remittance from 2012 excise tax collections on Burley and native tobacco will cover only the 10-percent share of provinces.

The share of provinces, cities and municipalities from tobacco excise taxes should be spent to advance the self-reliance of farmers through agri-industrial, cooperative, infrastructure and livelihood projects, as well as grant of financial and training support, the DBM said.