QuestionsQuestions (Republic Act No. 7171)
To extend special support to the farmers of the Virginia tobacco-producing provinces because they are the nucleus of the Virginia tobacco industry, which generates excise taxes and customs duties for the National Government, with the support implemented through financial assistance for local development projects.
To advance the self-reliance of tobacco farmers through: (1) cooperative projects improving product quality, productivity, market guarantee, and farmers’ income; (2) livelihood projects including alternative farming systems; (3) agro-industrial projects enabling farmers’ involvement in management and subsequent ownership of post-harvest/secondary processing such as cigarette manufacturing and by-product utilization; and (4) infrastructure projects such as farm-to-market roads.
Fifteen percent (15%) of the proceeds of excise taxes on locally manufactured Virginia-type cigarettes.
Divided among beneficiary provinces pro rata according to the volume of Virginia tobacco production.
An average annual production of Virginia leaf tobacco of not less than one million kilos.
The Department of Budget and Management (DBM).
National Tobacco Administration (NTA) records of tobacco acceptances at the tobacco trading centers for the immediate past year.
To retain annually the funds equivalent to fifteen percent (15%) of excise taxes on locally manufactured Virginia-type cigarettes to be remitted to qualified beneficiary provinces.
Yes. The provisions of existing laws to the contrary notwithstanding, the fifteen percent (15%) share from government revenues due to the Virginia tobacco-producing provinces is directly remitted to the provinces concerned.
Yes. It specifies projects under cooperative initiatives, livelihood/alternative farming systems, agro-industrial projects (post-harvest and secondary processing such as cigarette manufacturing and by-product utilization), and infrastructure such as farm-to-market roads.
The special support is intended to be in terms of financial assistance for developmental projects to be implemented by the local governments of the beneficiary provinces.
All enactments, legislative acts and rules and regulations inconsistent or incompatible with the provisions of RA 7171 are repealed.
Upon its approval.
Provinces producing Virginia tobacco are the beneficiary provinces, but they must qualify by meeting the minimum average annual production threshold of at least one million kilos.
It provides the factual basis and method for DBM to determine the beneficiary provinces and compute their pro rata share using the immediate past year’s data.
Post-harvest and secondary processing, including cigarette manufacturing and by-product utilization, with farmers involved in management and eventual ownership.