Neglect of tobacco industry to cost government billions

SANTIAGO, Ilocos Sur-The government stands to lose billions of pesos in income yearly because of what tobacco farmers called “government neglect and lack of attention given to the farmers.”

Mario Cabasal, president of a 55,000strong tobacco farmers group in Ilocos, said that based on statistics provided by National Tobacco Administration, there were 55,000 tobacco planters in 2015.

But lack of support from the government and lawmakers reduced their numbers to 40,000 last year, Cabasal said.

Based on a report from the Department of Finance, the government expects to generate about R183.2 billion from excise taxes on cigarettes and alcoholic beverages this year. R126.97 billion of the Bureau of Internal Revenue’s collection this year is projected to come from tobacco excise tax, 13.78 percent higher than the 2016 collection of R111.59 billion.

The government is relentlessly moving for implementing higher excise taxes for tobacco products without considering the interest of the farmers who sink deeper into loans just to sustain their livelihood, Casabal said.

In Santiago town, said to be one of the major tobacco producers, farmers told Manila Bulletin only 10 percent of them planted tobacco because of lack of government support.

Cabasal said the National Tobacco Administration is supposed to have programs intended for tobacco farmers.

“But where do these programs go, who are getting rich,” he said.

Ilocos Sur has a R16 billion share from excise taxes. “But who are benefiting from it; the farmers remain poor despite these money,” Cabasal said.