What's Happening?
In the Ilocos region of the Philippines, billions of pesos in tobacco tax shares from 2023 to 2025 remain unreleased, causing significant concern among local farmers and industry leaders. These funds,
established under Republic Act 7171, are intended to support local governments and ensure the self-reliance of farmers in tobacco-producing regions. Former Ilocos Sur governor Luis 'Chavit' Singson highlighted that the delay in releasing these funds has created a crisis for rural families, as rising farming costs continue to strain their resources. Despite the signing of the P6.79-trillion 2026 national budget, the critical funds from the previous three years have not been paid, stalling essential programs and projects. Singson expressed hope that with the appointment of acting Budget Secretary Rolando Toledo, the national government will streamline compliance requirements to facilitate the release of these funds.
Why It's Important?
The withholding of tobacco tax shares has significant implications for the socio-economic stability of the Ilocos region, which has historically been a strong supporter of President Marcos. The delay in fund release threatens the livelihood of tobacco farmers, who are a crucial part of the national economy. The funds are meant to provide local governments with resources to support public services and infrastructure projects, such as irrigation and roads, which are vital for the region's development. The situation underscores the importance of timely government support to uphold local autonomy and prevent further hardship for farmers. The resolution of this issue is critical to maintaining the economic stability and growth of the tobacco industry in the region.
What's Next?
Singson and other local leaders are hopeful that the funds for 2023, 2024, and 2025 will be released within the next 30 days to prevent further economic strain on tobacco farmers. The appointment of acting Budget Secretary Rolando Toledo is seen as a positive step towards addressing the compliance issues that have delayed the fund release. Local governments are eager to receive these funds to resume stalled projects and support the independent development of tobacco-producing regions. The outcome of this situation will be closely watched by stakeholders in the agriculture and tobacco industries, as well as by political leaders who rely on the support of the 'Solid North.'
