Phillipines: Angara Proposes Credit Fund for Tobacco Farmers

Source from:  Zamboanga Times 11/23/2012

Senator Edgardo Angara underscored on Thursday the need to make the sin tax bill equitable by setting aside a credit fund that will benefit affected stakeholders, particularly tobacco farmers.

Angara's proposal to create the credit fund was included in the final measure passed by the Senate on third and final reading on Tuesday.

The veteran lawmaker said the credit fund must be accessible to all eligible farmers from tobacco-growing provinces and must provide low-cost loans.

"Tobacco farmers must be able to directly avail of the proceeds of the sin tax bill, since this has a huge impact on their livelihood. The credit facilities should have concessionary interest rates, rates that are equal to the administrative cost of the fund," he explained.

Angara, vice chairman of the Senate committee on finance, said a portion of revenues from the measure can also be channeled toward establishing livelihood programs that will promote, enhance, and develop the tourism potential of tobacco-growing provinces.

"Part of the incremental revenue from the sin tax bill should be allocated to livelihood programs that will boost the tourism industry in beneficiary provinces. Such livelihood projects can make up for the potential loss in income of tobacco farmers, as well as provide for tourism-driven needs," he stressed.

Angara, also a member of the Senate committee on ways and means, added: "We must consider the allocation of the taxation burden. We cannot neglect stakeholders such as tobacco farmers whose source of income for their family must also be secured."

The sin tax bill aims to increase excise tax on tobacco and alcohol products by P40 billion in the first year of implementation.

Under the proposed law approved by the Senate, some 60 percent of the P40 billion revenue will be collected from tobacco industry and the remaining 40 percent from liquor and distilled spirits.

Senator Franklin Drilon, who sponsored the bill, said the bicameral conference committee is expected to approve the measure on the first week of December and hopefully, pass it into law before Congress takes its Christmas break on Dec. 19. Enditem