THE Department of Budget and Management (DBM) said P21 billion will be allocated to local government units (LGUs) as their share of excise tax collections on cigarettes and tobacco.

In a memorandum, the DBM said P17 billion of the allocation was generated from excise taxes on locally manufactured Virginia-type cigarettes to beneficiary provinces, pro-rated according to volume of production.

Some P4 billion was also generated from excise taxes on burley and native tobacco products, to be distributed among provinces depending on their burley and native leaf production.

The DBM distributes LGU shares for 2023 based on collections recorded in 2021.

It also said the funds from the locally manufactured Virginia-type cigarettes will be utilized to “advance the self-reliance of the tobacco farmers.”

This will be done through cooperative projects, livelihood projects, agro-industrial projects, and the like.

Funds from the burley and native tobacco shares will fund support programs for displaced tobacco farmers. — Luisa Maria Jacinta C. Jocson