Tobacco-producing local government units (LGU) are set to receive their shares from the 2013 collection of tobacco excise taxes, the Department of Budget and Management (DBM) said on Thursday.
The DBM said the fund to be released amounted to P10.69 billion, which was sourced from 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 comes from taxes on tobacco.
Under RA 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.
“These funds will certainly aid LGUs, especially those with lower annual incomes, to implement projects that will enable tobacco farmers to increase their productivity and income,” Budget Secretary Florencio Abad said.
Among the top 10 recipients, Candon City, Ilocos Sur will receive the highest share of P356.9 million. Other top recipients were Cabugao, Narvacan, Santa Cruz, San Juan, Santiago, Sinait, and Magsingal in Ilocos Sur; Balaoan, La Union; and Batac City in Ilocos Norte.