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Mar 10, 2016 @ 10:38

LGUs to get P10.69B shares from tobacco excise taxes

The Department of Budget and Management (DBM) said it is set to release P10.69 billion to local government units (LGUs) as their share from the 2013 collection of excise taxes on locally manufactured Virginia-type cigarettes, as well as on burley and native tobacco.

Of the amount, P10.19 billion pertains to the excise tax on cigarettes, while the remaining P503.9 million pertains to taxes on tobacco.
Candon City, Ilocos Sur will get the biggest shares with P356.9 million.

Candon is a fourth-class city with an average annual income between P160 million and P240 million.

“Through their fair share of tobacco excise taxes, LGUs will be able to boost their capacity to deliver basic services to communities, which is important for the national government’s goals on redistribution and meaningful devolution,” said Budget Secretary Florencio Abad.

The top 10 LGUs that got the biggest tobacco excise tax shares are: Candon City in Ilocos Sur, P356,857,162; Cabugao in Ilocos Sur, P331,288,034; Balaoan in La Union, P320,426,556; Narvacan in Ilocos Sur, P276,896,635; Sta. Cruz in Ilocos Sur, P264,492,112; San Juan in Ilocos Sur, P239,652,663; Santiago in Ilocos Sur, P232,386,288; Sinait in Ilocos Sur, P196,236,833; Magsingal in Ilocos Sur, P183,072,230; and Batac City in Ilocos Norte, P178,024,130.

Under Republic Act No. 7171, LGUs producing locally manufactured Virginia-type cigarettes are entitled to 15 percent of national tax collections, of which 30 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.

Under Republic Act No. 8240, LGUs producing burley and native tobacco will also receive a share of 15 percent from excise tax collections in 2013. 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.

Abad said to ensure transparency and accountability in the use of the shares, LGUs are required to submit details of the programs and for implementation based on their individual shares. LGUs must also prepare and publish quarterly reports on fund utilization and the status of project/program implementation.


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