Philippines: Bongbong asks PNoy: ''Where''s 15% Tobacco Farmers'' Share of Sin Tax Revenues?''

Source from:  InterAksyon.com 01/15/2014

Senator Ferdinand Marcos Jr. on Tuesday asked President Benigno Aquino III to account for the 15 percent of revenues from the Sin Tax Reform Law that tobacco farmers are entitled to.

Republic Act 10351 increased the excise tax on tobacco and alcohol products.

"Revenues earned by the government from 'sin' products, especially the increments made possible by the reformed six tax law of 2012, should trickle down to the intended beneficiaries," including tobacco farmers, Marcos said in a statement.

"It's very clear in the law that tobacco farmers should receive a certain percentage from the revenues out of the excise tax collection from tobacco products. If the law is very clear on that, the government should make sure that the farmers will get their entitlement," Marcos said.

There are 53,892 farmers who, together with their families, depend on the tobacco industry.

Marcos cited reports that the Bureau of Internal Revenue collected P91.6 billion from tobacco and alcohol products from January to November last year.

Section 8 of RA 10351 provides that: "Fifteen percent (15%) of the incremental revenue collected from the excise tax on tobacco products under R.A. NO. 8240 shall be collected and divided among the provinces producing burley and native tobacco in accordance with the volume of tobacco leaf production."

The fund is supposed to be used exclusively to promote alternatives for tobacco farmers and workers, such as programs to support a shift to production of other agricultural products or commercial crops, financial support for displaced farmers, infrastructure projects like farm-to-market roads, and agro-industrial projects that will enable them to be involved in the management and subsequent ownership of projects like post-harvest and secondary processing facilities.

Marcos is from the Ilocos, the country's main tobacco-growing region. Enditem