LGUs to get P700M from cigarette tax share
TOBACCO-producing local government units (LGUs) will receive P700.56 million more in cigarette excise taxes collected in 2015, the Department of Budget and Management (DBM) said.
In Local Budget Memorandum No. 75 dated Nov. 20 signed by Budget Secretary Benjamin E. Diokno, the DBM said that beneficiary LGUs are entitled to the remaining share of the “2015 collections of excise taxes on locally manufactured Virginia-type cigarettes under RA ( Republic Act) No. 7171 in the amount of P700,555,176.”
This is on top of the P13.91 billion LGUs were entitled to this year from 2015 taxes, as stated in Local Budget Memorandum No. 76 signed in Oct. 6.
RA 7171, directs the DBM to allot 15% of the taxes collected on locally manufactured Virginiatype cigarettes to the LGUs.
Some 40% of the total will go straight to the cities and municipalities, while provincial governments and congressional districts will get 30% each.
LGUs in Abra will get P106.67 million, while P61.18 million will go to Ilocos Norte, P450.72 million to Ilocos Sur, and P82.24 million to La Union.
According to RA 7171, the funds shall be utilized to advance the self- reliance of the tobacco farmers, which include cooperative, livelihood, agro-industrial, and infrastructure projects.
However, prior to the release of the funds, recipients must submit to the DBM Regional Office the list of programs and projects they intend to implement using funds from the excise tax collection.
Proposals must be supported by ordinances or resolutions approved by the local legislative body, as well as details of the implementation as well as projected and estimated number of beneficiaries.
Once the releases are secured, LGUs are then required to submit quarterly reports to the Budget department on the status of the projects.
“The responsibility and accountability in the implementation of programs and projects and proper utilization and disbursement of the LGU shares shall rest upon the local chief executive and other local officials concerned,” read the Oct. 6 memorandum.
“It is also the responsibility of the said local officials to ensure that the LGU shares are utilized strictly in accordance with applicable budgeting, accounting, and auditing rules and regulations, and pertinent provisions of RA No. 9184 ( Government Procurement Reform Act).” —