Tuesday, 26 April 2011 10:54
La Union Governor Manuel Ortega said in light of varying legislative proposals to adjust or restructure the excise tax on cigarettes and alcohol, their recommendation is for Congress to raise taxes on tobacco products at a minimal level and gradual phase.
"Our recommendation is to raise taxes on tobacco products gradually every three years at a lower percentage rate so as not to kill the tobacco industry which is the source of livelihood of many farmers," Ortega said.
Ortega made known his province's position in a letter to Rep. Eric Singson, Jr. (2nd District, Ilocos Sur), Chairman of the Subcommittee on National Internal Revenue, which has been conducting hearings on varying excise tax proposals.
He also recommended that the government should develop alternative products or uses of tobacco plants, including their leaves, flowers, stalks and steeds such as for medicines, panel boards, and pesticides, among others.
"This will be for the benefit of tobacco farmers and the general public," Ortega said.
Ortega also recommended that the government should develop and support the use of permanent and reliable alternative crops for the tobacco farmers' survival or benefit in the longer term.
According to the National Tobacco Administration, tobacco is grown in 27 provinces, covering approximately 40,297 hectares. The industry covers four types of locally grown tobacco, namely, Virginia, Burley and Turkish tobaccos, referred to as aromatic tobacco, and native tobacco.
The NTA cited Virginia tobacco as the most dominant and constitutes about 58% of the total tobacco area, equivalent to 23.347 hectares, 52 percent of the total tobacco farmers or 32,352, and is commercially grown in the four Ilocos provinces of Abra, Ilocos Norte, Ilocos Sur (60 percent) and La Union (17 percent).
In terms of employment profile, the NTA said the tobacco industry provides direct and primary source of livelihood to 43,960 farmers and about 300,000 other members of their families, and about 1.56 million other industry workers and dependents, totaling to an estimated 1.93 million Filipinos.
source: www.congress.gov.ph
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