Go appeals for the release of tobacco excise tax proceeds totobacco-producing provinces

Go appeals for the release of tobacco excise tax proceeds to
tobacco-producing provinces

By Ernie Reyes

MANILA  — Senator Christopher Lawrence “Bong” Go has appealed to
President Rodrigo Duterte to grant the Department of Budget and
Management the authority to release the shares of local government
units from the collection of excise tax on locally manufactured
Virginia-type cigarettes for fiscal years 2018 and 2019.

Go stated that the tobacco excise tax shares received by the
beneficiary LGUs will encourage required economic activity in the
agricultural sector, specifically in the tobacco industry, especially
in light of recent natural disasters in tobacco-producing provinces.

“Dahil po sa mga narakaraang kalamidad, naapektuhan ang produksyon ng
ating mga magsasaka, kabilang na ang mga tobacco farmers. Marami sa
kanilang mga pananim ang hindi napakinabangan,” explained Go.

“Sa tulong po nito, mabibigyan natin ng suporta ang mga LGUs upang
matulungan ang kanilang mga magsasaka na makabangon mula sa mga
problemang kanilang kinaharap,” he added.

Section 3 of Republic Act No. 7171 provides that the financial support
given by the national government for the beneficiary provinces will be
constituted and collected from the proceeds of 15% of the excise taxes
on locally manufactured Virginia type of cigarettes.

The funds allotted will be divided among the beneficiary provinces pro
rata according to the volume of Virginia tobacco production.

On the other hand, RA No. 8240, as amended by RA No. 10351, provides
that 15% of the incremental revenue collected from the excise tax on
tobacco products will be allocated and divided among the provinces
producing burley and native tobacco in accordance with the volume of
tobacco leaf production.

Notably, the shares of LGUs from fiscal years 2018 and 2019 for
collection of excise taxes on locally manufactured Virginia-type
cigarettes and Burley and Native tobacco amount to PhP24,810,788,000
and PhP21,277,819,000, respectively.

Earlier, Go thanked the agricultural workforce for working hard to
help ensure the nation’s economic recovery amid the ongoing pandemic.
He urged the government to further promote their welfare and safeguard
their well-being, particularly small-scale farmers.

He also assured agricultural workers that they may reach out to his
office should they need any form of support or assistance. He told
them that the Duterte administration is committed to ending the
ongoing crisis and helping communities attain population protection
leading to herd immunity through its vaccination efforts.

“Kung may maitutulong kami sa inyo, magsabi lang kayo. Huwag kayong
mahiya lumapit sa amin dahil trabaho namin ni Pangulong Rodrigo
Duterte na magserbisyo sa inyo. Patuloy din tayong magbayanihan at
magmalasakit sa ating kapwa upang malampasan natin ang mga pagsubok na
hinaharap natin,” said Go.

“Bisyo ko ang magserbisyo sa inyo. Gagawin natin ang lahat sa abot ng
ating makakaya upang makapagbigay ng tulong at makapag-iwan ng ngiti
sa oras ng inyong pagdadalamhati,” he reassured. (ai/mtvn)

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