Luzon Agriculture Crippled by Withheld Tobacco Tax Shares

VIGAN CITY , Philippines — Billions of pesos in tobacco tax shares from 2023 to 2025 remain unreleased – a broken promise that cuts deep in the Ilocos region. Having served as the “Solid North” foundation of President Marcos’ support, these farmers now feel abandoned by the leader they fought to elect. Demanding that the government honor the law, industry leaders warned that the “survival of the North” is at stake. They noted that with rising farming costs, the failure to release these funds has created a mounting crisis for rural families. Former Ilocos Sur governor Luis “Chavit” Singson, author of Republic Act 7171, said while the P6.79-trillion 2026 national budget has been signed, critical funds from the previous three years remain unpaid, stalling programs designed to ensure farmer self-reliance. It should be noted that the tobacco industry is one of the pillars of the national economy. “The withholding of these funds has resulted in critical service gaps that threaten the socio-economic stability of the North. These shares, established under RA 7171, are designed to provide local governments with consistent resources to support the farmers who serve as the industry’s backbone. The three-year delay in remitting these funds prevents local government units (LGUs) from acting on the urgent demands for public services, effectively stalling projects vital to the independent development and local autonomy of tobacco-producing regions,” Singson revealed, following discussions with various local government officials. Singson noted that the Tobacco Excise Tax Law was intended to provide LGUs with consistent resources. He expressed optimism that with the appointment of acting Budget Secretary Rolando Toledo, the national government can work to streamline the “compliance requirements” that have impacted the release of these funds. “The North has always stood as a pillar of support for this administration and we believe that this partnership must be reflected in the timely support of our communities,” Singson added. “We are hopeful that the 2023, 2024 and 2025 funds can reach our LGUs within the next 30 days to prevent further hardship for our tobacco farmers and uphold the spirit of local autonomy.” Recognized by the COA as the richest province in the entire country, Ilocos Sur is set to expand its irrigation, roads, and tourism infrastructure. However, Singson pointed out the irony of withholding the province’s excise tax shares, noting that these funds are vital to advancing such projects.