Support for Virginia Tobacco Farmers Act

Section 2 requires the special support to advance the self-reliance of Virginia tobacco farmers.
Section 2 provides that the support must be used for cooperative projects that enhance better product quality, increase productivity, guarantee the market, and increase farmers’ income.
Section 2 provides for livelihood projects, particularly alternative farming systems, to enhance farmers’ income.
Section 2 provides for agro-industrial projects enabling Virginia tobacco farmers in the beneficiary provinces to be involved in management and subsequent ownership of projects such as post-harvest and secondary processing, including cigarette manufacturing and by-product utilization.
Section 2 provides for infrastructure projects such as farm-to-market roads.

Section 3 establishes that the financial support is constituted and collected from the proceeds of 15% of the excise taxes on locally manufactured Virginia-type cigarettes.
Section 3 requires that the funds allotted be divided among beneficiary provinces pro rata according to the volume of Virginia tobacco production.
Section 3 provides that provinces producing Virginia tobacco are the beneficiary provinces under the Act, subject to qualification requirements.

Section 3 requires a province to qualify as a beneficiary only if it has an average annual production of Virginia leaf tobacco of not less than one million kilos.
Section 3 directs that the Department of Budget and Management (DBM) determine each year the beneficiary provinces and each province’s computed share.
Section 3 requires DBM’s annual determination to refer to National Tobacco Administration (NTA) records of tobacco acceptances at tobacco trading centers for the immediate past year.

Section 3 orders the Secretary of Budget and Management to retain annually the funds equivalent to 15% of the excise taxes on locally manufactured Virginia-type cigarettes for remittance to qualified beneficiary provinces.
Section 3 mandates that, notwithstanding provisions of existing laws to the contrary, the 15% share from government revenues due to the Virginia tobacco-producing provinces shall be directly remitted to the concerned provinces.

Section 4 repeals all enactments, legislative acts, and rules and regulations that are inconsistent or incompatible with the Act’s provisions.
Section 5 provides that the Act takes effect upon its approval.
Republic Act No. 7171 was approved on January 9, 1992.