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Misor guv expects boost in revenues from tobacco firm

By Shiela Mae Butlig,

THE provincial government of Misamis Oriental is expeting a boost in its revenues this year by P700 million pesos from exise tax from a tobacco firm.

This after it was disclosed that Philip Morris Fortune Tobacco Company (PMFTC) has P700 Million excise tax that will benefited the Provincial Government of Misamis Oriental.

This was confirmed by Provincial Governor Yevgeny Vincente Emano “Lipay uyamot kita kay ang probinsya sa Misamis Oriental adunay madawat nga buwis gikan sa excise tax. Kining pagtanom ug pag-process sa Philip Morris sa lungsod sa Claveria. Adunay gitawag nga excise tax, kun sin tax,” Emano said.

He continued that representatives from Philip Morris personally informed him last week that the Department of Budget Management (DBM) has included the province of Misamis Oriental of the excise tax coming from one of the biggest tobacco companies internationally, the PMFTC.

Didet Danguilan, PMFTC’s communication manager said that this amount that was granted by the Department of Budget and management  to the province is after the farmers of Claveria has reached their identified quota of 1.2 million kilos in the year 2015.

Base on R.A 7171 , 15 % the financial support given by the National Government for the beneficiary provinces shall be constituted and collected from the proceeds of fifteen percent (15%) of the excise taxes on locally manufactured Virginia type of cigarettes.

The funds allotted shall be divided among the beneficiary provinces pro rata according to the volume of Virginia tobacco production.

Provinces producing Virginia tobacco shall be the beneficiary provincesunder this Act: Provided, however, That, to qualify as beneficiary under this Act, a province must have an average annual production of Virginia leaf tobacco in an amount not less than one million kilos.

Danguilan then reiterated that what they have in Claveria , is only the facilities for tobacco.

“Ang may-ari nang lupa ay mga farmers at binibili namin ang tobacco sa kanila”, said Danguilan.

The PMFTC’s rule in Claveria is they bought the tobaccos that was planted by the farmers, brought it in the facility of the PMFTC where it was being process .

This excise tax according to Emano was for the five years of PMFTC doing their business in Claveria.

When ask if who would benefit the said tax, Emano answered that   the municipal government of Claveria and the barangay where the plantation is located will enjoy the excise tax.

Emano said once collected, most of the excise tax will be used to develop Claveria including the cementing of roads in the municipality.

As of 2016 , a total of 681 hectares has been planted with tobaccos in Claveria and there were over 519 farmers , according to Danguilan.

As to the issue of banning of smoking in public areas as what was emphasized by President Duterte , Emano told this paper that he will agree to it and will just wait for the order of the President.

If it will be implemented , he stresses out that he will diligently follow it.

Ipatuman gyud nato ni sa capitolyo ug naa designated areas kuns asa didto pud ko manigarilyo”, added Emano.

He even reiterated that somehow it will help him to lessen his smoking session.


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