LOCAL government units (LGUs) will receive P21 billion from the excise taxes collected from domestically manufactured tobacco and cigarettes, the Department of Budget and Management (DBM) said.
In a memorandum, the DBM said P17 billion in excise taxes on Virginia tobacco cigarettes will go to provinces, pro-rated based on the volume of production.
Some P4 billion worth of Burley and native tobacco excise taxes will go to the provinces in accordance with the volume of their leaf production.
The sharing scheme for Burley and native tobacco is 50% to the provinces and the remaining 50% shared out by volume of production among municipalities and cities.
The volume of production and trade acceptances of the beneficiary LGUs were identified based on certifications issued by the National Tobacco Administration, as endorsed by the Department of Agriculture.
Programs and projects funded by the tobacco tax allocations must be in line with the Agricultural and Fisheries Modernization Program and the Roadmap for the Philippine Tobacco Industry, the DBM said.
“Moreover, beneficiary LGUs are highly encouraged to allocate at least 25% of their total share for cooperative programs, livelihood projects, and financial support for registered tobacco farmers,” it added. — Beatriz Marie D. Cruz