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LGUs’ share from tobacco taxes hits P15.8B

June 19, 2019

TOBACCO-PRODUCING local government units’ (LGU) shares from 2016 collections of excise taxes on tobacco reached more than P15 billion, according to the Department of Budget and Management (DBM)

In a memorandum signed on June 14, DBM Officer-in-Charge Janet Abuel said the fund to be released to LGUs totaled P15.813 billion, which was sourced from 2016 excise-tax collections on locally manufactured Virginia-type cigarettes, as well as on burley and native tobacco.

Of the amount, P12.887 billion came from excise taxes on cigarettes and the remaining P2.926 billion from those on tobacco.

Ilocos Sur province had the largest share of the cigarette taxes collected with P7.676 billion. Abra province came next with P1.922 billion; La Union province, P1.449 billion; Ilocos Norte province, P1.063 billion; and Misamis Oriental province, P775 million.

Under Republic Act 7171, local governments producing Virginia-type cigarettes are entitled to 15 percent of national tax collections.

Thirty percent will be divided among the beneficiary provinces; 40 percent among component cities and municipalities; and 30 percent to the component cities and municipalities, to be computed based on the volume of tobacco production.

Isabela province has the biggest share of the tobacco taxes collected with P1.426 billion. Other recipients were Abra, Kalinga, Ilocos Norte, Ilocos Sur, La Union, Pangasinan, Cagayan, Nueva Vizcaya, Tarlac, Occidental Mindoro, Misamis Oriental, Maguindanao and North Cotabato.

Under RA 8240, local governments producing burley and native tobacco will also get a 15-percent share from excise tax collections in 2016. Of this share, 10 percent will go to beneficiary provinces and 90 percent to the component cities and municipalities, based on the volume of tobacco production.

Abuel explained “the individual shares of the beneficiary LGUs were computed based on their respective volumes of production and trade acceptances, as reflected in the certifications issued by the National Tobacco Administration and endorsed by the Department of Agriculture.”

Credit belongs to : www.manilatimes.net

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