Department of Budget and Management Responsibilities
- Include 15% of excise taxes (based on BIR certified collections) on Virginia type cigarettes in the Internal Revenue Allotment for General Appropriations Act.
- Determine qualified beneficiary provinces and local units based on average annual Virginia tobacco production (minimum 1 million kilos).
- Compute and release funds to LGUs monthly via Advice of Allotment and funding checks, considering budget constraints.
Bureau of Internal Revenue Responsibilities
- Collect and set aside 15% of excise tax collections on locally manufactured Virginia cigarettes for the second calendar year preceding distribution.
- Submit certification of excise tax set aside to DBM by April 15 each year for budget preparation.
National Tobacco Administration Responsibilities
- Implement documentation and reporting system for Virginia tobacco production and acceptances by trading centers.
- Provide DBM and LGUs with certified reports of production and acceptances by province, district, city, and municipality by first quarter each year.
Local Government Units Responsibilities
- Proportionately distribute funds among provincial, municipal, and city levels as prescribed.
- Maintain separate accounting records for receipts and disbursements of funds.
- Secure legislative council approval for projects financed by these funds.
Basis and Computation of Fund
- Fund equivalent to 15% of excise tax computed based on actual BIR collections for the second calendar year before distribution (budget year).
Qualification of Beneficiary Provinces
- Provinces must have an average annual Virginia tobacco production of at least 1 million kilos over the immediate past two years, starting 1991 onwards.
Financing, Remittance, and Sharing Scheme
- Funds distributed pro-rata among beneficiary provinces based on adjusted tobacco acceptances for the immediate past year (2 years prior to budget year).
- DBM releases funds quarterly to LGUs via Advice of Allotment and monthly funding checks.
- Distribution of shares within provinces: 30% to provincial government, 40% to municipalities and cities (split equally and by production volume), 30% to municipalities and cities in congressional districts based on production volume.
- At least 50% of all LGU shares must be allocated to barangay economic development projects.
Utilization of Funds by LGUs
- Funds treated as special account under the LGU general fund for:
- Cooperative projects improving product quality, productivity, market guarantee, and farmer income.
- Livelihood and alternative farming system projects.
- Agro-industrial projects involving farmer participation in management and ownership (processing, manufacturing).
- Infrastructure projects including farm-to-market roads.
Effectivity
- Circular took effect immediately upon adoption on November 28, 1993.