DBM vows to Release P3.5-B Tobacco Fund for Region 1

Source from:  Manila Bulletin 02/15/2015

At least P3.5-billion tobacco excise tax funds is set to be released within this month by the Department of Budget and Management (DBM) as the share of Virginia tobacco-producing provinces in Region 1.

The announcement was made last Friday by no less than DBM Secretary Florencio Abad Jr. during his press briefing at Hotel Luna in Vigan City.

Abad said the release of the much-awaited tobacco funds from the Republic Act 7171 was realized upon the instruction of President Aquino and clarified that the cause of delay in its release is due to the issues on spending related to the Priority Development Assistance Fund (PDAF) and the Disbursement Acceleration Program (DAP).

"The office of the President and the lawyers of the government tried to look at the instances (where) that they can happen; because (DAP) was declared unconstitutional; so included in their review was the tobacco excise tax system," Abad said.

However, he said that the implementation of the tobacco fund should follow the guidelines set by the DBM and the National Tobacco Administration (NTA) in which the tobacco farmers are directly benefitted.

Records from the DBM showed that out from the P3.5 billion RA 7171 tobacco excise tax fund expected to be released this February, P432 million is for Abra; P531 million for Ilocos Norte; P469 million for La Union; and P1.1 billion for Ilocos Sur.

Earlier, Congressman Eric D. Singson said that the expected first tranch release of the tobacco excise tax fund this year will cover "pass due" shares from RA 7171starting 2012 and 2013.

Abad also disclosed said that other release of RA 7171 tobacco fund is expected before the end of the first semester of the year. Enditem