Question & AnswerQ&A (Republic Act No. 7171)
The main policy is to extend special support to the farmers of the Virginia tobacco-producing provinces as they are the nucleus of the Virginia tobacco industry which generates significant income for the National Government.
The Act provides financial assistance for developmental projects to be implemented by the local governments of the provinces concerned.
The objectives are to advance the self-reliance of tobacco farmers through cooperative projects, livelihood projects including alternative farming systems, agro-industrial projects involving tobacco farmers in management and ownership, and infrastructure projects such as farm-to-market roads.
The financial support is funded from fifteen percent (15%) of the excise taxes on locally manufactured Virginia-type cigarettes.
The funds are divided among the beneficiary provinces pro rata according to the volume of Virginia tobacco production.
Provinces producing Virginia tobacco qualify if they have an average annual production of not less than one million kilos of Virginia leaf tobacco.
The Department of Budget and Management (DBM), referring to the records of the National Tobacco Administration (NTA), determines the beneficiary provinces and their computed share annually.
The Secretary of Budget and Management is directed to retain the funds equivalent to fifteen percent (15%) of excise taxes on Virginia-type cigarettes and remit them directly to the qualified beneficiary provinces.
All enactments, legislative acts, and rules and regulations inconsistent or incompatible with this Act are repealed.
The Act took effect upon its approval on January 9, 1992.