What's Happening?
In the Philippines, billions of pesos in tobacco tax shares from 2023 to 2025 remain unreleased, causing significant distress in the Ilocos region. This area, known as the 'Solid North,' has been a stronghold
of support for President Marcos. The delay in releasing these funds has led to a crisis for rural families, as rising farming costs continue to mount. Former Ilocos Sur governor Luis 'Chavit' Singson, who authored Republic Act 7171, highlighted that despite the signing of the P6.79-trillion 2026 national budget, critical funds from the previous three years remain unpaid. This has stalled programs aimed at ensuring farmer self-reliance. The tobacco industry is a crucial part of the national economy, and the withholding of these funds has resulted in service gaps that threaten the socio-economic stability of the North. Singson expressed hope that with the appointment of acting Budget Secretary Rolando Toledo, the national government can streamline compliance requirements to facilitate the release of these funds.
Why It's Important?
The delay in releasing tobacco tax shares is significant as it affects the socio-economic stability of the Ilocos region, a key agricultural area in the Philippines. The funds are intended to support local governments in providing necessary resources to farmers, who are vital to the tobacco industry. The withholding of these funds not only impacts the farmers' livelihoods but also stalls essential public services and development projects. This situation underscores the importance of timely government support and the potential consequences of bureaucratic delays. The resolution of this issue is crucial for maintaining the economic stability of the region and supporting the agricultural sector, which is a backbone of the local economy.
What's Next?
Singson has expressed optimism that the funds for 2023, 2024, and 2025 can be released to local government units within the next 30 days. This would prevent further hardship for tobacco farmers and uphold the spirit of local autonomy. The appointment of acting Budget Secretary Rolando Toledo is seen as a positive step towards addressing the compliance requirements that have delayed the release of funds. The timely release of these funds is essential to support the development of infrastructure projects such as irrigation, roads, and tourism, which are vital for the region's growth and economic stability.
