New excise tax rules help tobacco farmers

By Freddie G. Lazaro

LAOAG CITY, Ilocos Norte — The national government has assured more benefits to tobacco growers once the enhanced rules on the use of tobacco excise tax collections are completed for implementation.

National Tobacco Administration (NTA) Administrator Edgardo D. Zaragoza said Tuesday the rules on Local Government Units’ availing of their shares from the excise tax collection is aimed at making the implementation of programs and projects more transparent.

“With the new rules and regulations in the release and utilization of funds, the farmers and other industry stakeholders are given the chance to provide input in the preparation of the master plan for the development of the industry,” he said.

Last Feb. 14, Zaragoza met some local executives and other public officials at the Ilocos Norte Provincial Capitol in Laoag City.

Zaragoza clarified the LGUs are still the ones that will choose the programs and projects they want and implement them.

“That discretion is not taken away by the new Sin Tax Law and its implementing rules,” he said, adding that the LGUs will still directly take charge of the funds.

But Zaragoza told local chief executives that the procedure for the release of the funds could have been changed based on the guidelines on the release of funds set by the national government.

Part of the IRR mandates the Department of Agriculture (DA) and the NTA to institutionalize mechanisms to monitor the utilization LGUs share in terms of benefits derived in accomplishing the purposes for which the tobacco excise tax was created.

“Our consultation with the local leaders is an initiative to ensure that tobacco excise tax funds are properly implemented benefitting the tobacco farmers more, which further assures that these tobacco funds would really propel the progress of the tobacco-producing areas and at the same time this would sustain the industry,” he said.