Tobacco-producing LGUs to receive P18B

By Mayvelin U. Caraballo, TMT, Manila Times, 6 Nov 2020

Tobacco-producing local government units (LGUs) will get a total of P18 billion from the 2017 excise tax collections of the national government, according to the Department of Budget and Management (DBM). In a memorandum signed on November 4 and released on Thursday, Budget Secretary Wendel Avisado said the figure included the P14.40 billion in excise taxes on locally manufactured Virginia-type cigarettes and the P3.60-billion excise taxes on burley and native tobacco. Under Republic Act (RA) 7171, LGUs producing Virginia-type cigarettes are entitled to 15 percent of national tax collections, while RA 10351 required the state to release 15 percent of its excise tax collections to LGUs producing burley and native tobacco. The memorandum also listed the guidelines for the release and utilization of the local governments’ shares to 2017 excise taxes. Avisado said the fund would be utilized for projects and programs that would advance the self-reliance of tobacco farmers.