PT: Misamis Oriental to receive P700-M excise tax from tobacco
THE province of Misamis Oriental will be receiving its share of the excise tax the government collected from the sale of tobacco, more than double of the expected amount.
Governor Yevgeny Vicente Emano announced on Monday, March 13, that he received word that the Department of Budget and Management (DBM) would be giving the province’s share of the excise tax amounting to P700 million and not P300 million as earlier expected by the Provincial Government.
Philip Morris Fortune Tobacco Company (PMFTC) Inc., the leading tobacco company in the country, facilitated the province’s share when it ventured into planting Virginia tobacco in Claveria town about five years ago. The tobacco production in the town has been benefiting more than 1000 farmers, notwithstanding the hundreds of jobs created as a result.
“I’m glad that the investment of Philip Morris in Claveria has brought us added revenue, which would greatly help to fund the developmental projects of the province, and that of the town of Claveria where Virginia tobacco plantations are located.” Emano said.
Republic Act No. 7171 “Act To Promote The Development Of The Farmer In The Virginia Tobacco Producing Provinces”, provides that the government, after collecting the excise tax coming from cigarette manufacturers, would allocate percentages of the said tax to the province and towns where Virginia tobacco leaf are produced.
Section 3 of R.A. 7171 on Financing and remittance, states that, “the financial support given by the National Government for the beneficiary provinces shall be constituted and collected from the proceeds of 15 percent of the excise taxes on locally manufactured Virginia type of cigarettes.”
Under the law, for the province to qualify as beneficiary it must have an average annual production of Virginia leaf tobacco of not less than one million kilos.
In 2015 Claveria produced 1.2 million kilos of Virginia leaf tobacco that the province and the town are now entitled to have their share of the excise tax.
Board Member Gerardo Sabal III said that the excise tax share of the province will go a long way to realize the various undertakings of the province on social services, particularly the health program of the governor.
“We never expected that Misamis Oriental would receive such a blessing that would greatly help to realize further our social services program. Our share of the excise tax is heaven sent.” Sabal said.