DBM releases excise tax shares to Cordi provinces

THE Department of Budget has released the shares of Abra, Kalinga and Mt. Province in tobacco excise tax collection in 2012.

The Special Allotment Release Orders (SAROs) and the Notices of Cash Allocations (NCAs) were released by the DBM to local government units producing burley and native tobaccos and manufacturing Virginia-type cigarettes.

Initially, a portion of the total tobacco excise tax shares amounting to P3.45 billion was released by the DBM which is divided among tobacco producing and manufacturing LGUs.

Of the amount, Abra has a share of P432,631,219 from the 2012 excise tax of its 5,200,727.70 kilograms of locally-manufactured Virginia-type cigarettes.

The provincial government of Abra has a share of P185,413,380 and the rest of the amount is the share of the tobacco producing and Virginia-type cigarette manufacturing municipalities.

The LGU breakdown is as follows: P46,102,811 for the municipality of Pilar; P26,803,492 for Villaviciosa; P22,320,886 for San Isidro; P14,030,526 for Pidigan; P13,339,852 for Tayum; P12,840,740 for Luba; and P10,649,249 for Bangued.

A share of P4,888,632 is given to Bucay; P4,592,167 for Danglas; P5,678,953 for Dolores; P4,622,803 for Manabo; P7,150,347 for Penarubbia; P4,675,852 for Sal-lapadan; P6,791,384 for San Juan; P6,752,013 for San Quintin; P4,578,109 for Tineg; and P5,618,943 for Tubo.

The municipalities of Boliney, Bucloc, Daguioman, La Paz, Lacub, Lagangilag, Langiden, Langayan, Licuan-Baay, and Malibcong also gets a share of P4,578,108 each.

From the 2012 collection of burley and native tobacco excise tax, Abra has a share of P359,918 for its; Kalinga has P26,665 and Mt. Province has P18,054.

These provinces has a volume production of 105,038 kilograms; 7,782 kilograms; and 4,269 kilograms of burley and native tobacco respectively.

LGUs can download the funds only after documentary requirements pursuant to Local Budget Memorandum no. 69 has been submitted to the DBM-CAR.

These documents include a list of projects and programs relative to tobacco farming, livelihood, capacity-building, infrastructure and agro-industrial projects to be implemented using the fund with supporting documents such as the approved City Council ordinance or resolution for the projects/programs, the mechanism and period of implementation, and the projected and estimated number of beneficiaries.

The projects and/or programs should be included in the Annual Investment Program and they should have a Copy of Certificate of Registration from the Securities and Exchange Commission as well as a Copy of Certificate of Accreditation from the Cooperative Development Authority.

The 15 percent share of the LGUs from the incremental revenue from the excise tax on tobacco products and locally manufactured Virginia-type cigarettes is in accordance with the Republic Act 8240 and RA 7171.

In a statement, DBM secretary Florencio Abad said the allotment of shares is for tobacco farmers and cigarette manufacturers to sustain the industry.

"Tobacco farmers will now have the budgetary support to develop their self-reliance through livelihood and cooperative projects that can help increase their productivity or enhance their income," he said.

"More than just strengthening the LGUs the benefit from the releases, the proceed from the taxes give these LGUs more economic opportunities. In the end, the progress of the tobacco industry also sustains the country's overall economic expansion and exclusive development," he added.

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