Philippines: Tobacco Agency Consults Farmers on Enhancing Use of Excise Tax

Source from:  Philippine Information Agency  02/27/2014

The National Tobacco Administration (NTA) has started a series of consultations with a multi-sectoral group involved in the tobacco industry to ensure that the increased tobacco taxes will benefit tobacco growers.

NTA Administrator Edgar D. Zaragoza said the consultations will gather inputs to enhance the implementing rules and regulations (IRR) on the use of the increased excise taxes imposed on cigarettes.

He said the NTA along with the Departments of Finance (DOF) and Budget and Management (DBM), are working on the IRR to ensure that excise taxes from cigarettes will directly benefit tobacco farmers.

"In 2013, excise tax collection from tobacco increased by almost P35 billion. From P32 billion in 2012, it became P67 billion in 2013," Zaragoza said.

The increase in excise taxes was caused by the enactment of Republic Act No. 10351 or the Sin Tax Reform Law in 2012 which levies higher taxes on cigarettes and liquor. The law took effect in January 2013.

Under the law, a portion of revenue collected will be allocated to projects that will benefit tobacco farmers and workers nationwide in addition to the tobacco farmers' livelihood support under RA 7171 and RA 8240.

Zaragoza recently sat down with officials and members of the National Federation of Tobacco Farmers' Associations and Cooperatives here.

He also met the tobacco farmers' groups from Northern Luzon in Pangasinan and a consultation with all the mayors from the tobacco producing provinces in Northern Luzon in Candon City, Ilocos Sur.

Last February 8, he had a consultation-meeting with the the National Federation of Tobacco Grower Associations and Cooperatives (NAFTAC) in Bauang, La Union during the launching of the Mighty Corporation's corporate social responsibility (CSR) project. Enditem