By Rikka Castañeda
Tobacco-producing provinces are now reaping the fruits of excise taxes with Ilocos Sur getting the lion’s share of the proceeds from 2020 revenues from Virginia tobacco and Isabela receiving nearly half of the tax fund from Burley and Native tobacco.
In the Local Budget Memorandum (LBM) No. 86 released by the Department of Budget and Management (DBM) last Dec. 14, 2022, proceeds from the excise fund for fiscal year 2020 under Republic Act 7171 covering Virginia tobacco amounted to P15.01 billion.
The same budget memo reflected P4 billion being collected for the Burley and Native tobacco excise tax fund under RA 8240.
The National Tobacco Administration (NTA) said that out of the P15 billion Virginia tobacco excise tax fund, Ilocos Sur got the biggest share with P9.28 billion, followed by Abra with P2.03 billion; then Ilocos Norte, P1.88 billion; and La Union, P1.82 billion.
In the provincial RA 7171 excise tax share, 70 percent will be distributed to the LGUs, and the 30 percent goes to the provincial government.
On the LGU level, the top 10 municipalities with the biggest share from the RA 7171 tobacco fund are: Magsingal (Ilocos Sur) – P764, 823,126; Candon City (Ilocos Sur) – P656,446,632; Pilar (Abra) – P650, 564,891; Cabugao (Ilocos Sur) – P567,481,053; Balaoan (La Union) – P529,265,776; Sinait (Ilocos Sur) – P456,325,843; Sta. Cruz (Ilocos Sur) – P414,084,062; San Juan (Ilocos Sur) – P323,495,337; Pinili (Ilocos Norte) – P298,838,814; and Burgos (Ilocos Sur) – P298,473,560.
Meanwhile, the province of Isabela topped the excise tax share of the 18 provinces engaging in Burley and Native tobacco nationwide pursuant to RA 8240. Isabela has a excise tax share of P1.88 billion.
Rounding-up the top 10 LGU-recipients of the Burley and Native tobacco excise tax fund collected in 2020 are: Quirino (Isabela) – P169,614,784; Roxas (Isabela) – P154,022,563; Aurora (Isabela) – P149,625,636; Malig (Isabela) – P102,374,263; Reina Mercedes (Isabela) – P72,580,611; Alcala (Pangasinan) – P72,060,844; Ilagan City (Isabela) – P58,365,308; Narvacan (Ilocos Sur) – P48,074,000; Bauang (La Union) – P44,166,807; and Laguindingan (Misamis Oriental) – P40,530,529.
The LBM No. 86, signed by Budget Secretary Amenah Pangandaman, stated that the volume of production and trade acceptances of beneficiary-LGUs were based on the certifications issued by the NTA and endorsed by the Department of Agriculture (DA).
NTA Public Relations Officer Freddie Lazaro said public consultations will be conducted by beneficiary LGUs with tobacco farmers duly identified by the NTA to determine the appropriate programs and projects beneficial to them.
“This will be done with the assistance of the DA and NTA,” Lazaro said.
The NTA added that the programs and projects to be implemented by the beneficiary LGUs using the tobacco excise tax fund should be included in their duly approved Local Investment Programs and Annual Investment Programs (AIPs).